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In a Closed Economy,if Y Remained the Same,but G Rose,T

Question 89

Multiple Choice

In a closed economy,if Y remained the same,but G rose,T rose by the same amount as G,and C fell but by less than the increase in T,what would happen to private and national saving?


A) national saving would fall and private saving would rise
B) national saving would rise and private saving would fall
C) both national saving and private saving would fall
D) None of the above is correct.

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