If interest rates increase to a very high level, people will most likely hold
A) more money in savings accounts and less cash.
B) less money in savings accounts and less cash.
C) less money in savings accounts and more cash.
D) more money in savings accounts and more cash.

Question

Quizplus · Accepted Answer

When interest rates increase to a very high level, people are incentivized to save more money in savings accounts to earn higher interest, rather than holding onto cash which does not earn interest.

If Interest Rates Increase to a Very High Level, People