When there few people looking to save their money and there is high demand for loans, one would expect interest rates to be high.

Question

Quizplus · Accepted Answer

When there are few people looking to save money and there is a high demand for loans, lenders can charge higher interest rates because there is more competition among borrowers for limited funds. Higher interest rates will encourage more people to save and reduce the demand for loans.

When There Few People Looking to Save Their Money and There