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Refer to the diagram- in which solid arrows reflect real flows- broken.pdf

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Refer to the diagram, in which solid arrows reflect real flows; broken arrows are monetary flows. Flow (1) might represent: corporate income tax payments. government provision of highways for truck transportation. business property tax payments. transfer payments to low-income families. Other things equal, an increase in the equilibrium interest rate will: increase R & a mp : D spending. rise when the supply of loanable funds increases. decrease purchases of capital goods and reduce R\&:D spending. increase bank lending..

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Refer to the diagram, in which solid arrows reflect real flows; broken arrows are monetary flows. Flow (1) might represent: corporate income tax payments. government provision of highways for truck transportation. business property tax payments. transfer payments to low-income families. Other things equal, an increase in the equilibrium interest rate will: increase R & a mp : D spending. rise when the supply of loanable funds increases. decrease purchases of capital goods and reduce R&:D spending. increase bank lending.

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