If people think interest rates are above their normal levels, they will want to hold more money in savings accounts and less in cash.

Name: If people think interest rates are above their normal levels, they will want to hold more money in savings accounts and less in cash.
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Question

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When interest rates are high, people are incentivized to keep their money in savings accounts or other interest-bearing accounts to earn more money, rather than holding onto cash that will not earn interest.

If People Think Interest Rates Are Above Their Normal Levels