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    Principles of Economics Study Set 1
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    Exam 21: Saving and Capital Formation
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    Holding Other Factors Constant, a Decline in the Price of New
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Holding Other Factors Constant, a Decline in the Price of New

Question 88

Question 88

Multiple Choice

Holding other factors constant, a decline in the price of new capital goods will:


A) increase national saving.
B) decrease national saving.
C) increase investment.
D) decrease investment.

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