10 Show on the graph how each of the following events changes the equilibrium interest rate by shifting the relevant curve(s).a. The president signs a tax cut into law.b. An engineering advance induces many firms to upgradetheir computer systems.c. Congress repeals an investment tax credit anduses the revenue to reduce other taxes.d. A flu pandemic induces consumers to stay at home ratherthan go shopping.Interest rateInterest rateInterest rate1082110871110:21D 100 200100 100 200300 400 500 600Lounable funds700SD800 900 1,000SD300 400 500 600 700 800 900 1,000Loanable fundsSDD 100 200 300 400 500 600 700 800 900 1,000Loanable fundsS

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Show on the graph how each of the following events changes the equilibrium interest rate by shifting the relevant curve(s). a. The president signs a tax cut into law. b. An engineering advance induces many firms to upgrade their computer systems. c. Congress repeals an investment tax credit and uses the revenue to reduce other taxes. Interes 10 9 B 7 6 10 9 3 2 11 0 D 100 200 300 400 500 600 700 800 900 1,0 Loanable funds 10 D 9 100 200 D Loanable funds D 300 400 500 600 700 800 900 1,0

Show on the graph how each of the following events changes the equilibrium interest rate by shifting the relevant curve(s). a. The president signs a tax cut into law. b. An engineering advance induces many firms to upgrade their computer systems. c. Congress repeals an investment tax credit and uses the revenue to reduce other taxes. Interes 10 9 B 7 6 10 9 3 2 11 0 D 100 200 300 400 500 600 700 800 900 1,0 Loanable funds 10 D 9 100 200 D Loanable funds D 300 400 500 600 700 800 900 1,0

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Savings,investment And The Financial System

Section: Chapter Questions

Problem 5PA

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