00:01
Here for the answer.
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The investment savings curve saws various levels of interest, rates and gdp output, at which investment, that is i, and savings that is as, are equal.
00:20
Factors that shift include the change in government spending, autonomous investment, autonomous consumption, expenditure, autonomous net, exports, taxes and financial frictions.
00:39
Now for the part one.
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Financial friction increases.
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With the increase in financial friction consumption decrease making is curve to shift left.
00:52
Now for the second part.
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Autonomous consumption decreases.
00:57
A decrease in autonomous consumption directly affect the curve making it shift left.
01:06
For the third part, the government provides tax incentives for research and development programs for firms.
01:16
The is curve shifts to right as tax incentives leads to more planned expenditure, which in terms increases output...
