Multiple Choice
In a diagram illustrating the savings and investment functions for a closed economy with no government, an increase in saving at every level of income will:
A) shift the investment function up and increase equilibrium income.
B) increase the slope of the savings function and lower equilibrium income.
C) leave the level of investment and saving unchanged but lower the equilibrium income.
D) change the slope of the investment function but leave equilibrium income unchanged.
Correct Answer:
Verified
Correct Answer:
Verified
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