Consider a closed economy. A decrease in the price of goods that firms produce and an increase in the marginal propensity to save of households will decrease the equilibrium real interest rate and equilibrium investment in this economy. ture or false or uncertain

Consider a closed economy. A decrease in the price of goods that firms produce and an increase in the marginal propensity to save of households will decrease the equilibrium real interest rate and equilibrium investment in this economy. ture or false or uncertain

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Savings,Investment And The Financial System

Section: Chapter Questions

Problem 2QCMC

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Concept explainers

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.

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Consider a closed economy. A decrease in the price of goods that firms produce and an
increase in the marginal propensity to save of households will decrease the equilibrium
real interest rate and equilibrium investment in this economy.

ture or false or uncertain

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