The saving-investment diagram shows that a higher real interest rate due to a leftward shift of the saving curve
a. causes the amount of firms' investment to increase.
b. causes the total amounts of saving and investment to fall.
c. increases the total amount of saving because of the increase in the real interest rate.
d. raises the profitability of investment for firms.
Answer: B
FIN 201
- Whether real seignorage revenue increases when the rate of money growth increases depends on whether
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