The following table lists some economic agents and their intentions. At present the interest rate is 5 percent.

-Refer to the table above.Why might Mike decide to decrease his saving?

Question

The following table lists some economic agents and their intentions. At present the interest rate is 5 percent.
 
-Refer to the table above.Why might Mike decide to decrease his saving?

Quizplus · Accepted Answer

Each of the scenarios provided could lead Mike to decide to decrease his savings. Losing a high-paying job (A) might necessitate using savings for living expenses, an increasing interest rate (B) could make borrowing more attractive than saving, and wanting to buy a new car (C) might mean he chooses to spend rather than save.

The Following Table Lists Some Economic Agents and Their Intentions