A Suppose a Government Education Program Succeeds in Getting Households

question 127

Essay

a. Suppose a government education program succeeds in getting households to save more (you may interpret this as a downward shift in the consumption function). Using the long-run model of the economy developed in Chapter 3, graphically illustrate the impact of the higher saving rate by households. Be sure to label:
i the axes
ii. the curves
iii. the initial equilibrium values
iv. the direction curves shift
v. the terminal equilibrium values

b. State in words what happens to
i. the real interest rate
ii. nafional saving
iii. investment
iv. consumption
v. output.

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Definitions:

Output Coil

In programmable logic controllers (PLCs), an output coil represents a device or actuator to be controlled by the PLC's program.

TON Instruction

A timer instruction used in programming that starts timing when the input condition becomes true and continues until the set time has elapsed.

Accumulated Value

Refers to a value that increases over time, often resulting from the aggregation of multiple increments in a process or calculation.