O DATE.

Gucshon 4 a)
Oha oP H
efke of the edues invegtmurt deho inceease etoomtc& Cnd poltical uncaainty
n real income 1 Hhet Crecdec hop inherest, reiltsi which ncreacehe cos of
DoraioS to mance consuchion utha obich ellect to hgner cos ot uymg houses
a edce dead o, dhe new and estn house ilerFohes ie-
ines hsinereesiiko9regale dand sl Shf4 lruo as iovestmehtdacecge

and neaag in mttregt rates Jhe frstof se cuomer expeoditWes on

dwrR rtag. he pendtures Coughed as CurEn eaerConsuonpttn io tk
nahnel ncoe auo. Anal

aPtectd by
COmponeni e
Dves}men du ta hich me} reHe
lousRY
deman& fheat may be f c
suDLompomeiy
9PE Stera Couermend spendng h nahoenl oCoe aco6wnts includes Syae
an al goyerpne Spenat wil be lowsed br teduccd ko matth sth tte
lowr rvne neced .
1 geveT govemment ean shabilize e_etbnomy oy louern inteestcatesS TO
Vori
can

opver meni
moe 0sh®v
nave mure

heti-olo
income
The govenment
hicn ull
showld inteace
ghuld
nchease

deticit
alko catfing taxes

mone ANCuleatioo

Spenan durm8economi
for tepespke
e horte
dowtAm
.
io thtpeopte

do

hogregakt eypentiture

,G
o C+1,tGo

a-blsh
a-blLG
A
1,

E inieceth rac sits, te inesTntnr decreased fyoon oo,h decreese

ninahur Gr oggaOK penditue Schtduledoun because hL oiercap

mallrrom 6,C1 a to6,- CIG, Lncoma decreaced rom Yo to y

NO DATE

Queshan 4)b)

The eynessn Mohiveg hor holdhg nsne dhat uncy wed as a meditubn of

evlhangs csindividuals old'money uce in doy hamsackion As A pecuhjon ay

otucamoey belaoeac bserc he ld m co ofunepetied exparditugs bdh hdayidua
and butineschhan eep cah in Eserwm 0rder omewnexpelid needs csl but nol

LeA,as fbr gpetulttiVeoHe imdividual hold honey fo inveshmeni n He fnanciau

mar Cc o make ofit. IheM bond cnd seewHes at
g
uure
eiHrest
_a hgnerprice.Peple Lsish
rae and th
pwrchoee

Telatbnshp
to hold
behueen
nonybeause
changes m
ol
lower price

he uncertandy
nerest ratts and prsce of bande,
cind

about

Speciiauy, Paple rean liquidiy to speculalke the bond prite will fal.

1he éloaice kondid n explicily fbrmulakt

dawnand for Morey Hor. y emphe s ted

eraeachun demans for mongy n teas of evelotihy

of
crculahon of monfy h
his is eCucRr accs, medun 6 change aod,futintate te echange ct gedde and
r ViCRS Hoeyer in the Keynesicn 'motNes f He ii tpel betueen the mcurring ef

expenditure cnd cevpt ot come Is small,less cash will be ed held by people br

ttnschoo,tt depend upon peL}ahton Gf income,nk€rest vcaHes busnese ur 6vey

oell aDoral poris betucers receipt ad disurse men MCOme. o