Other things constant, if there is an increase in the demand for goods now compared to goods in the future, we would expect that the

Name: Other things constant, if there is an increase in the demand for goods now compared to goods in the future, we would expect that the
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An increase in current demand for goods typically leads to higher consumption and lower savings, which can cause the real interest rate to rise as lenders demand higher returns to compensate for the reduced availability of funds.

Other Things Constant, If There Is an Increase in the Demand