The quantity of by households will be less .
A) consumption; the lower is the inflation rate
B) saving; the lower is the real interest rate
C) consumption; the higher is disposable income
D) saving; the higher is disposable income

Question

Quizplus · Accepted Answer

When real interest rates are low, households have less incentive to save their money, thus leading to a decrease in the quantity of savings.

The Quantity of by Households Will Be Less