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If,at a Given Interest Rate,the Quantity of Savings Supplied Is

Question 49

Multiple Choice

If,at a given interest rate,the quantity of savings supplied is less than the quantity of investment demanded,what can we conclude?


A) There is a shortage of savings and real interest rates will fall.
B) There is a surplus of savings and real interest rates will rise.
C) There is a surplus of savings and real interest rates will fall.
D) There is a shortage of savings and real interest rates will rise.

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