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An increase in savings __________.A. provides more funds for investment b. reduces the money supply c. increases current consumption d. increases interest rates

An increase in savings __________.A. provides more funds for investment b. reduces the money supply c. increases current consumption d. increases interest rates
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An increase in savings __________.A. provides more funds for investment

b. reduces the money supply
c. increases current consumption
d. increases interest rates

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User Bdls
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1 Answer

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An increase in savings (D) increases interest rates. An interest rate is the cost of borrowing money. It is also the compensation for the service and risk of lending money. Without that, the willingness of the people to lend money will be low.
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User CruorVult
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