According to the Classical Model Shown Above,an Autonomous Decline in Investment

question 7

Multiple Choice

According to the classical model shown above,an autonomous decline in investment shifts the investment schedule to the left.Furthermore,the equilibrium interest rate declines.Distance A describes an interest rate induced

• A)decline in saving,which is an equal increase in consumption.
• B)increase in investment.
• C)decrease in investment.
• D)decline in saving,which exceeds the increase in consumption.

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