Using a graph similar to the one in Figure 1 prove that when interest rates increase,...

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Using a graph similar to the one in Figure 1 prove that when interest rates increase, savings (and investment) decrease. Make sure to provide proper explanations following the argument provided above.

Ct+1 Figure 1

business economics

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Answer 1

Answer #1

Chiven that The inปestment curve isdawnuod sloping because cuhen intevest vate vises the cost of capita increage and thus the nuestnent demand Decrea se as show n figure aboue

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Using a graph similar to the one in Figure 1 prove that when interest rates increase,...