我想問如果Government expenditures 增加咗, 如何解釋 saving, investment and the real interest rate response to this fiscal policy??
- 1 十年前最愛解答
when expense increase, people income increase because this is not a contactionary policy, so people income higher, saving higher, investment higher and interest rate lower. Because people have more income now they don't have to borrow money any more, interest rate would therefore decrease