An increase in output will lead to an increase in both national saving and investment but

Question

An increase in output will lead to an increase in both nationa

l saving and investment but

a fall in the price level in the long run. True/False/Uncerta

in, explain and support your

answer in a diagram that displays

the market for loanable funds

.

Interest rate
Change in
interest rate,
S
increase in
demand For
loanable
Funds
Quantity
Macroeconomics