If you see low interest rates, you(r) ________ and consumption growth ________.
A) save less; slows down
B) expect high rates of inflation; speeds up
C) discount the future more; is constant
D) save more; increases
E) permanent income is constant; is zero

Question

Quizplus · Accepted Answer

Low interest rates make saving less attractive, so people save less. This leads to increased consumption growth.

If You See Low Interest Rates, You(r) ________ and Consumption