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Any Change That Reduces Desired Saving Relative to Desired Investment

Question 63

Multiple Choice

Any change that reduces desired saving relative to desired investment (for a given level of output) causes the real interest rate to ________ and shifts the IS curve ________.


A) increase; down and to the left
B) increase; up and to the right
C) decrease; down and to the left
D) decrease; up and to the right

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