Empirical evidence indicates that higher real interest rates lead to ________ in savings.
A)modest increases
B)substantial increases
C)no change in
D)modest decreases

Name: Empirical evidence indicates that higher real interest rates lead to ________ in savings. A)modest increases B)substantial increases C)no change in D)modest decreases
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Question

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Higher interest rates, indeed, are shown to slightly increase the rate of saving as savers find it more rewarding to save at higher real interest rates.

Empirical Evidence Indicates That Higher Real Interest Rates Lead to ________