People will usually save more if the interest rate:
A) is higher.
B) is lower.
C) moves erratically.
D) is zero.

Question

Quizplus · Accepted Answer

People are more likely to save if they can earn a higher rate of return on their savings. When the interest rate is higher, people have a greater incentive to save because they can earn more money on their savings. On the other hand, when interest rates are lower or at zero, people may be less motivated to save because the return they receive on their savings is less attractive.

People Will Usually Save More If the Interest Rate