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1.67 pts When people decide to spend a smaller percentage of each paycheck, this causes national saving to rate to _in a clos
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D) Increase, Decrease

When people decide to spend a smaller percentage of each paycheack, this causes nationals saving to increase and the equilibrium interest rate to decrease in a closed economy.

When people are spenidng less , then savings will increase and eventually increase the national savings. Whereas eqilibrium interest rate will tend to decrease , to discourage saving and increase spending in an economy. Interest rates are increased to make savings more attractive. Thus, in a closed economy national savings will increase with less spending and interest rates will be decreased.

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