The Saving-Investment Diagram Shows That a Higher Real Interest Rate

question 53

Multiple Choice

The saving-investment diagram shows that a higher real interest rate due to a leftward shift of the saving curve

• A)raises the profitability of investment for firms.
• B)causes the amount of firms' investment to increase.
• C)increases the total amount of saving because of the increase in the real interest rate.
• D)causes the total amounts of saving and investment to fall.

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