When households increase their personal savings ________.
A)investment decreases
B)they are better able to cope with severe economic downturns
C)interest rates are likely to rise,as well
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

When households increase their personal savings, they are better able to cope with severe economic downturns. This is because they have a financial buffer to fall back on in case of emergencies, unemployment, or unexpected expenses. However, there is no direct correlation between personal savings and investment or interest rates.

When Households Increase Their Personal Savings ________