Assume the economy is initially operating at the natural level of output. Suppose that individuals decide to increase their saving. We know that this increased desire to save will be "neutral" in:
A) both the short run and the medium run.
B) the short run, but not the medium run.
C) the medium run and the long run.
D) neither the medium run nor the short run.
E) the medium run, but not the long run.
Correct Answer:
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