An increase in the expected real interest rate tends to
(a) raise desired savings only.
(b) raise desired investment only.
(c) raise both desired savings and desired investment.
(d) raise desired savings, but lower desired investment.
Answer: D
An increase in the expected real interest rate tends to
(a) raise desired savings only.
(b) raise desired investment only.
(c) raise both desired savings and desired investment.
(d) raise desired savings, but lower desired investment.
Answer: D
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.