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    Macroeconomics Study Set 39
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    Exam 3: National Income: Where It Comes From and Where It Goes
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    Suppose People in an Economy Reduce Their Saving
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Suppose People in an Economy Reduce Their Saving

Question 150

Question 150

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Suppose people in an economy reduce their saving. What will be the effect on real interest rate and investment?

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If households develop a tendency of savi...

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