At what level of output is investment both positive and holding steady?





a. Y1

b. Y*

c. Y2

d. 0

b. Y*

Economics

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Suppose the nominal interest rate is 10 percent, the tax rate on interest income is 28 percent, and the inflation rate is 6 percent. Then the after-tax real interest rate is -3.2 percent

a. True b. False Indicate whether the statement is true or false

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What is the opportunity cost of unemployment for an economy? What social problems have been linked to higher rates of unemployment?

What will be an ideal response?

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