When individuals become more willing to save because their incomes have increased, the interest rate ______ and borrowing ______.

Name: When individuals become more willing to save because their incomes have increased, the interest rate ______ and borrowing ______.
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Question

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When individuals save more due to increased income, the supply of loanable funds increases, leading to a decrease in interest rates, which in turn encourages more borrowing.

When Individuals Become More Willing to Save Because Their Incomes