Exhibit: Saving Investment, and the Interest Rate 2 Real Saving, S interest rate, 72 1 Desired investment 1 S S S Saving
Posted: Mon Mar 21, 2022 4:28 pm
Exhibit: Saving Investment, and the Interest Rate 2 Real Saving, S interest rate, 72 1 Desired investment 1 S S S Saving, investment The economy begins in equilibrium at point E, representing the real interest rate r 1 at which saving S1 equals desired investment / 1. What will be the new equilibrium combination of real interest rate, saving, and investment if there is a technological innovation that increases the demand for investment goods? O A. point C O B. point B O C. point D OD.point A