If the interest rate increases from 3 percent to 4 percent, other things constant, individuals will want to
a. save and borrow more
b. save and borrow less
c. save more and borrow less
d. save less and borrow more
e. borrow more but save the same amount
C
Economics
You might also like to view...
Which of the following statements is true about bonds?
A) Sellers of newly issued bonds are borrowers. B) When the government and large corporations want to borrow money they buy bonds. C) A bond owner must hold a bond until it matures. D) The interest rate on a bond is directly related to its price.
Economics
If you have trouble finding a job because of a slowdown in the overall economy, we would say that you are
A) cyclically unemployed. B) frictionally unemployed. C) seasonally unemployed. D) structurally unemployed.
Economics