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Sagot :
Answer:
Decreases; increasing
Explanation:
However, the reduction in expenditure on export subsidies decreases the fiscal deficit, thereby increasing public saving.
National savings refers to the sum of public and private savings. Public savings is the government budget balance. An increase in the balance or decrease in deficit implies the public savings increase and also increase in national savings. Then, the decrease in subsidy spending decreases government deficit and increases national savings and supply of loanable funds, so the loanable funds shift to the right.
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