Consider the Long-Run Theory of Investment,saving and Growth

Multiple Choice

Consider the long-run theory of investment,saving and growth.For a given level of national income,a decrease in private consumption or government purchases will cause the equilibrium interest rate to

A) increase and the flow of national saving to fall.
B) increase and the flow of investment to increase.
C) increase and the flow of investment to decrease.
D) decrease and the flow of investment to decrease.
E) decrease and the flow of investment to increase.