Question: in the supply demand model for saving, in a closed economy, an increase in marginal product of capital will: increase the real interest rate and

in the supply demand model for saving, in a closed economy, an increase in marginal product of capital will:

  1. increase the real interest rate and decrease the level of investment
  2. increase the real interest rate and increase the level of investment
  3. decrease the aggregate level of saving
  4. decrease the real interest rate and increase the level of investment
  5. produce an equal increase in the user cost of capital

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