Any Change That Reduces Desired Saving Relative to Desired Investment

question 63

Multiple Choice

Any change that reduces desired saving relative to desired investment (for a given level of output) causes the real interest rate to ________ and shifts the IS curve ________.

• A)increase; down and to the left
• B)increase; up and to the right
• C)decrease; down and to the left
• D)decrease; up and to the right

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Definitions:

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A period of four decades, often used to denote a significant amount of time in discussions of human life, historical events, or long-term changes.

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