When interest being paid on savings is lower than anticipated inflation, consumers are enticed into spending more and saving less.

Name: When interest being paid on savings is lower than anticipated inflation, consumers are enticed into spending more and saving less.
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Question

Quizplus · Accepted Answer

When interest rates on savings are lower than inflation, the real value of savings decreases over time, encouraging consumers to spend rather than save to maintain their purchasing power.

When Interest Being Paid on Savings Is Lower Than Anticipated