An increase in the real interest rate
A) increases savings for both borrowers and lenders.
B) increases savings for borrowers, but has an uncertain effect on the savings of lenders.
C) increases savings for lenders, but has an uncertain effect on the savings of borrowers.
D) has an uncertain effect on the savings of both borrowers and lenders.
B
Economics
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Indicate whether the statement is true or false
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What will be an ideal response?
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