If disposable income increases, people ________ saving and the real interest rate will ________.

Name: If disposable income increases, people ________ saving and the real interest rate will ________.
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If disposable income increases, people will have more money available to spend and save, so they will increase their saving. This increase in saving will lead to an increase in the supply of loanable funds and a decrease in the demand for loanable funds. As a result, the real interest rate will fall.

If Disposable Income Increases, People ________ Saving and the Real