An increase in the real interest
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.
E) reduces savings for both borrowers and lenders.

Question

Quizplus · Accepted Answer

The Answer of An increase in the real interest
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.
E) reduces savings for both borrowers and lenders.

An Increase in the Real Interest