Business, 20.06.2020 22:57, shannonderemer

Suppose that every additional three percentage points in the investment rate (I ÷ GDP) boost economic growth by one percentage point. Assume also that all investment must be financed with consumer saving. The economy is now assumed to be fully employed at If the goal is to raise the economic growth rate by 1 percent, Instructions: Enter your responses as a whole number. a. By how much must investment increase? $ billion b. By how much must consumption decline for this to occur? $ billion

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Suppose that every additional three percentage points in the investment rate (I ÷ GDP) boost economi...