Suppose that there is an increase in Consumption, holding both G and Y* equal. If this is the case, what happens to both National Savings and the interest rate? O National Savings would decrease, leading to a decrease in the interest rate. O National Savings would increase, leading to an increase in the interest rate. O National Savings would decrease, leading to an increase in the interest rate. O National Savings would increase, leading to a decrease in the interest rate.
Suppose that there is an increase in Consumption, holding both G and Y* equal. If this is the case, what happens to both National Savings and the interest rate? O National Savings would decrease, leading to a decrease in the interest rate. O National Savings would increase, leading to an increase in the interest rate. O National Savings would decrease, leading to an increase in the interest rate. O National Savings would increase, leading to a decrease in the interest rate.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Production And Growth
Section: Chapter Questions
Problem 5CQQ
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