Consider the following policy scenarios. Construct a diagram reflecting the policy and explain how it relates to the loanabke market. Please label diagram so it is easy to follow and understand.   Scenario policy 2: Suppose the government changes the tax code, allowing individuals to reduce their taxable income if they save money in registered retirement saving plans (RRSPs)

Economics:
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Author:BOYES, William
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Chapter15: Macroeconomic Viewpoints: New Keynesian, Monetarist, And New Classical
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Problem 7E
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Consider the following policy scenarios. Construct a diagram reflecting the policy and explain how it relates to the loanabke market. Please label diagram so it is easy to follow and understand.

 

Scenario policy 2: Suppose the government changes the tax code, allowing individuals to reduce their taxable income if they save money in registered retirement saving plans (RRSPs) 

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