Use the model developed in Chapter 3 and assume that consumption does not depend on the interest rate. Holding other things constant, when the government lowers taxes on business investment, thus increasing investment demand, the quantity of investment: Group of answer choices and the interest rate are both unchanged. increases and the interest rate rises. decreases and the interest rate rises. is unchanged and the interest rate rises.
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Use the model developed in Chapter 3 and assume that consumption does not depend on the interest rat...
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