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Suppose productivity in Happyland increases

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Question;Suppose productivity in Happyland increases. Using a correctly labeled loanable funds graph, show and explain how the increase in productivity will affect the loanable funds market in Happyland.a. Explain how the change in interest rates will affect each of the following.Capital investmentLong-term economic growthb. Explain how the change in interest rates will affect the international value of Happyland?s dollar.

 

Paper#55538 | Written in 18-Jul-2015

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