Exhibit: Saving, Investment, and the Interest Rate 1 the Economy

question 66

Multiple Choice

Exhibit: Saving, Investment, and the Interest Rate 1 The economy begins in equilibrium at point E, representing the real interest rate r₁ at which saving S₁ equals desired investment I₁. What will be the new equilibrium combination of real interest rate, saving, and investment if the government increases spending, holding other factors constant?

• A)point A
• B)point B
• C)point C
• D)point D

---

Definitions:

External Environment

All external factors and forces outside an organization that affect its performance and strategies.

Team

A team is a group of individuals working collaboratively towards a shared goal, often complementing each other's skills and strengths.

Informal Leader

An individual within an organization who, without official authority, exerts influence and provides direction through personal attributes and relationships.

Unique Ability

A distinct talent or skill that sets an individual apart from others, often contributing to their success or effectiveness in certain roles or activities.