Question

Notes: Be careful while labeling the axis and the curves as you would lose points if they are not labeled and labeled wrongly. Indicate the impact of variables/curve through Analyze the following situations graphically in a closed economy set-up 1. Impact of a decrease in budget 2. arrow s. Impact of increased unce tainty in businesses: 3. Effect of this decline in com cer- on- sumer and business confidence deficit: Investments curve Savings curve Interest rate Investments curve Invest ments curve Savings curve Interest rate Savings curve Interest rate A nl:nl

Answer 1

GRAPHICAL ANALVS1S 1. Aamfack of a ducrase ina budptfoal of imaa unilaualy in buameao PSAVING CURUE T T N T BPERSONAL R BAVINGS E INUESTAENT 1NUESTMENTF SAVINGS SAVINGS Effect of thuo dechne in conoumer ard booinaes corafidenes INVESTNENf. aSAVINGS TQAT CNTERESt H 2two