In the flexible-price model, an increase in the household or foreign saving will result in
A) an increase in the interest rate.
B) a decrease in investment expenditures.
C) a decrease in the interest rate.
D) an increase in potential output.
Correct Answer:
Verified
Q35: In the flexible-price model, a decrease in
Q36: In the flexible-price model, an increase in
Q37: In the flexible-price model, a decrease in
Q38: In the flexible-price model, a decrease in
Q39: In the flexible-price model, a decrease in
Q41: The interest rate _ in response to
Q42: The interest rate will _ if _
Q43: The interest rate will _ if _
Q44: The supply of private savings in the
Q45: The supply of public savings in the
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