If interest rates increase, savings will increase, and the marginal propensity to consume will decrease.
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Q36: The relationship between real interest rates and
Q37: The equation for the real interest rate
Q38: Which of the following is the best
Q39: A reduction in real interest rates will
Q40: Real interest rates and investment are
A)negatively correlated
Q42: When the rate of inflation rises, the
Q43: A rise in inflation will
A)reduce interest rates
Q44: When inflation is rising, the Fed will
A)lower
Q45: The flatter the aggregate expenditure line, the
Q46: When interest rates increase, the opportunity cost
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