3. Explain how each of the following will affect the consump- tion and saving schedules (as they relate to GDP) or the in- vestment schedule, other things equal: LO1, LO3 a. A large increase in the value of real estate, including private houses. b. A decline in the real interest rate. c. A sharp, sustained decline in stock prices. d. An increase in the rate of population growth. e. The development of a cheaper method of manufacturing computer chips. f. A sizable increase in the retirement age for collecting Social Security benefits. g. An increase in the Federal personal income tax.
3. Explain how each of the following will affect the consump- tion and saving schedules (as they relate to GDP) or the in- vestment schedule, other things equal: LO1, LO3 a. A large increase in the value of real estate, including private houses. b. A decline in the real interest rate. c. A sharp, sustained decline in stock prices. d. An increase in the rate of population growth. e. The development of a cheaper method of manufacturing computer chips. f. A sizable increase in the retirement age for collecting Social Security benefits. g. An increase in the Federal personal income tax.
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.2P
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What effect will each of the changes listed in Study Question 3 of Chapter 27 have on the equilibrium level of
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