(Answered) Assume that the government has announced a cut in

Economics

Assume that the Government has announced a cut in Government Spending followed by a tax increase:

Can you establish the macroeconomics effects of these policies on consumption, investment, interest rate and savings? Use the models (consumption model and loanable funds market) and the graphs. Explain

What about the aggregate demand (AD)? Use the Keynesian cross.

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Macroeconomics, Economics

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