Savers are motivated by the

Question

Quizplus · Accepted Answer

Savers are motivated by the real interest rate, which is the nominal interest rate minus the expected rate of inflation. This is because the real interest rate represents the actual increase in purchasing power that the saver will receive, while the nominal interest rate only represents the rate of interest without accounting for inflation. Thus, savers are most concerned with maintaining or increasing their purchasing power over time, which is determined by the real interest rate.

Savers Are Motivated by the