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Analyze the effects of each of the following on national saving, investment, and the real interest rate. Explain your reasoning and illustrate it with an

Analyze the effects of each of the following on national saving, investment, and the real interest rate. Explain your reasoning and illustrate it with an appropriate diagram.

(a) Consumer confidence rises, so consumers decide to consume more and save less at every level of the real interest rate. (b) A new technology breakthrough increases the future marginal product of capital and expected future income.

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