As the interest rate increases,consumers will tend to _____
A) increase their savings because of the higher opportunity cost of future consumption.
B) decrease savings because of their greater reliance on borrowing.
C) increase their savings because of the lower opportunity cost of current consumption.
D) decrease savings because of diminishing marginal utility.
E) increase savings because of the higher opportunity cost of current consumption.
Correct Answer:
Verified
Q54: Other things constant,the supply of loanable funds
Q55: Which of the following will cause a
Q56: The demand curve for loanable funds is
Q57: Everything else remaining unchanged,if consumers decide to
Q59: Financial intermediaries bring suppliers and demanders together
Q60: Everything else remaining constant,a technological breakthrough that
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents