Real Interest Rate 12 4 FIGURE 25-2 1 11 12 13 P -100 Quantity of Investment and Saving (S) Refer to Figure 25-2. Suppose national saving is reflected by NS, and investment demand is reflected b Now suppose the government implements a policy that encourages investment. What is the effect in th market for financial capital? Select one: a. National saving shifts to NS₁, investment demand shifts to 1₁D, and the quantity of national saving rises t b. There is no effect on NS or ID and the quantity of national saving supplied remains at I". c. National saving shifts to NS₁, and the quantity of national saving supplied rises to 1₂. d. Investment demand shifts to 1₁D and the quantity of national saving supplied rises to 1₁. e. Investment demand shifts to 1₁D, national saving shifts to NS₁, and the quantity of national

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Real Interest Rate
1₂
1.
4
FIGURE 25-2
1 11 12 13
-10
Quantity of
Investment
and Saving (5)
Refer to Figure 25-2. Suppose national saving is reflected by NS, and investment demand is reflected by
Now suppose the government implements a policy that encourages investment. What is the effect in th
market for financial capital?
Select one:
a. National saving shifts to NS₁, investment demand shifts to 1₁D, and the quantity of national saving rises t
b. There is no effect on NS or ID and the quantity of national saving supplied remains at I".
c. National saving shifts to NS₁, and the quantity of national saving supplied rises to 12.
d. Investment demand shifts to 1₁D and the quantity of national saving supplied rises to 1₁.
e. Investment demand shifts to 1₁D, national saving shifts to NS₁, and the quantity of national
Transcribed Image Text:Real Interest Rate 1₂ 1. 4 FIGURE 25-2 1 11 12 13 -10 Quantity of Investment and Saving (5) Refer to Figure 25-2. Suppose national saving is reflected by NS, and investment demand is reflected by Now suppose the government implements a policy that encourages investment. What is the effect in th market for financial capital? Select one: a. National saving shifts to NS₁, investment demand shifts to 1₁D, and the quantity of national saving rises t b. There is no effect on NS or ID and the quantity of national saving supplied remains at I". c. National saving shifts to NS₁, and the quantity of national saving supplied rises to 12. d. Investment demand shifts to 1₁D and the quantity of national saving supplied rises to 1₁. e. Investment demand shifts to 1₁D, national saving shifts to NS₁, and the quantity of national
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