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flemingpk flemingpk
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A year ago
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

Microeconomics


Edition: 17th
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LoveameriahLoveameriah
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A year ago
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