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Which of the following best explains why there is a positive relationship between the interest rate ...

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Which of the following best explains why there is a positive relationship between the interest rate ...

Which of the following best explains why there is a positive relationship between the interest rate and the amount of household savings supplied to the financial capital market?

▸ An increase in the interest rate causes the investment demand curve to shift up.

▸ A decrease in the interest rate increases the opportunity cost of current spending, which leads to an increase in desired saving.

▸ An increase in the interest rate causes the savings demand curve to shift up.

▸ An increase in the interest rate increases the opportunity cost of current spending, which leads to an increase in desired saving.

▸ An increase in the interest rate increases the opportunity cost of current spending, which leads to a decrease in desired saving.

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Microeconomics

Edition: 17^th

Author: Ragan

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Loveameriah

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flemingpk Author

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Brilliant ツ

erimis

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this is exactly what I needed

kriggs62

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Thanks for your help!!

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