An increase in the expected real interest rate tends to
a. raise desired investment only.
b. raise both desired saving and desired investment.
c. raise desired saving only.
d. raise desired saving, but lower desired investment.
Answer: D
An increase in the expected real interest rate tends to
a. raise desired investment only.
b. raise both desired saving and desired investment.
c. raise desired saving only.
d. raise desired saving, but lower desired investment.
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