How if at all does this development affect output y and the, Microeconomics

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How if at all does this development affect output y and the

Question: Suppose financial innovations reduce the interest rate differential at a given level of output.

How, if at all, does this development affect output, Y, and the saving real interest rate rs ? How does it affect the borrowing real interest rate rb ? Draw a diagram to help illustrate your answer.

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Microeconomics: How if at all does this development affect output y and the

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