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Principles of Macroeconomics/Financial Sector
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Impact of National Saving on Investment

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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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