Assume the economy is initially operating at the natural level of output.Now suppose that individuals decide to reduce their desire to save.We know with certainty that which of the following will occur in the short run as a result of decreased desire to save?
A) greater investment
B) less investment
C) an increase in the nominal wage
D) higher output and lower investment
E) no change in the economy at all
Correct Answer:
Verified
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Q11: When the economy is operating at a
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