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If the Real Interest Rate on Savings Accounts Decreases from 5

Question 74

Multiple Choice

If the real interest rate on savings accounts decreases from 5% to 3%,all other things being equal,


A) business investment spending for new capital decreases.
B) business investment spending for new capital remains unchanged.
C) people are less willing to save.
D) people are more willing to save.
E) the amount people will save remains unchanged.

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