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If Consumers Decide to Save a Larger Percentage of Their

Question 28

Multiple Choice

If consumers decide to save a larger percentage of their incomes,it will be


A) harmful in the long run because the price level will rise.
B) beneficial in the short run because saving will rise.
C) beneficial in the long run because interest rates will fall.
D) harmful in the long run because aggregate supply will fall.
E) harmful in the long run because unemployment will increase.

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