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    Foundations of Macroeconomics Study Set 2
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    Exam 10: Finance, Saving, and Investment
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    If Saving Supply Decreases, the Equilibrium Real Interest Rate<sub>--------------------</Sub> and the Equilibrium
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If Saving Supply Decreases, the Equilibrium Real Interest Rate-------------------- and the Equilibrium

Question 151

Question 151

Multiple Choice

If saving supply decreases, the equilibrium real interest rate-------------------- and the equilibrium quantity of investment --------------------.


A) rises; increases
B) rises; decreases
C) does not change; does not change
D) falls; decreases
E) falls; increases

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