Show what happens to one-both curves for the given scenarios

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Reference no: EM1361708

he graph below shows the demand for saving (also known as the investment curve) and the supply of saving (also known as the saving curve) for an economy that does not trade with other countries (that is, net exports equal zero at all times). Show what happens to one or both curves for the given scenarios. If the scenario does not change either curve, leave them in their original positions.

Tool tip: Click and drag one or both of the curves. Curves will snap into position, so if you try to move the curve and it snaps back to its original position, just try again and drag it a little farther. When you are satisfied with your answer, click the Submit Answer button.

The government decreases its purchases, but leaves net taxes unchanged.

Reference no: EM1361708

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