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In the Neoclassical View of the Macroeconomy, If There Is

Question 21

Multiple Choice

In the neoclassical view of the macroeconomy, if there is not enough investment spending to use all available savings


A) the Federal Reserve will raise the interest rate.
B) the interest rate will fall.
C) excess savings will be hoarded.
D) excess savings will be used to pay taxes.

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