Multiple Choice
An increase in the real interest rate
A) increases savings for lenders, but has an uncertain effect on the savings of borrowers.
B) reduces savings for both borrowers and lenders.
C) increases savings for borrowers, but has an uncertain effect on the savings of lenders.
D) increases savings for both borrowers and lenders.
E) has an uncertain effect on the savings of both borrowers and lenders.
Correct Answer:
Verified
Correct Answer:
Verified
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