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

Question

Quizplus · Accepted Answer

When the real interest rate is lower, households are less incentivized to save because the returns on savings are reduced, leading to a decrease in the quantity of saving.

The Quantity of by Households Will Be Less _