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    Principles of Economics Study Set 1
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    Exam 21: Saving and Capital Formation
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    As the Real Interest Rate Increases, the Quantity of Saving
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As the Real Interest Rate Increases, the Quantity of Saving

Question 78

Question 78

Multiple Choice

As the real interest rate increases, the quantity of saving supplied ________ and the quantity of saving demanded ________.


A) increases; increases
B) increases; decreases
C) does not change; does not change
D) decreases; increases

Correct Answer:

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