Impact of National Saving on Investment
How does an increase in national saving affect the real interest rate and the level of investment?
A
Both the real interest rate and investment will decrease.
B
The real interest rate will decrease, and investment will remain unchanged.
C
The real interest rate will decrease, and investment will increase.
D
The real interest rate will remain unchanged, and investment will increase.
E
The real interest rate will increase, and investment will decrease.
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