In the Saving-Investment Diagram, an Increase in Output Will Lead

question 53

Multiple Choice

In the saving-investment diagram, an increase in output will lead to

• A)a reduction in saving and a rise in the real interest rate.
• B)an increase in saving and a fall in the real interest rate.
• C)a reduction in saving and a fall in the real interest rate.
• D)an increase in saving and a rise in the real interest rate.

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