Suppose there are no firms,only the government and households.What would be the result if for some reason the supply of saving at every interest rate suddenly fell?
A) Interest rates would fall and the level of saving would fall.
B) Interest rates would fall and the level of saving would not change.
C) Interest rates would rise and the level of saving would not change.
D) Interest rates would rise and the level of saving would fall.
E) Interest rates would not change and the level of saving would fall.

Question

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The Answer of Suppose there are no firms,only the government and households.What would be the result if for some reason the supply of saving at every interest rate suddenly fell?
A) Interest rates would fall and the level of saving would fall.
B) Interest rates would fall and the level of saving would not change.
C) Interest rates would rise and the level of saving would not change.
D) Interest rates would rise and the level of saving would fall.
E) Interest rates would not change and the level of saving would fall.

Suppose There Are No Firms,only the Government and Households