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Assume the Economy Is Initially Operating at the Natural Level

Question 37

Multiple Choice

Assume the economy is initially operating at the natural level of output.Suppose that individuals decide to decrease their saving.We know that this decreased desire to save will be "neutral" in


A) the short run,but not the medium run.
B) the medium run,but not the long run.
C) neither the medium run nor the short run.
D) both the short run and the medium run.
E) none of the above

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