Any change in the economy that raises desired national saving for a given value of the real interest rate will shift the desired national saving curve
A)to the right and increase the real interest rate.
B)to the right and decrease the real interest rate.
C)to the left and increase the real interest rate.
D)to the left and decrease the real interest rate.

Question

Quizplus · Accepted Answer

An increase in desired national saving shifts the saving curve to the right, leading to a lower real interest rate as the supply of savings increases.

Any Change in the Economy That Raises Desired National Saving