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The following table lists some economic agents and their intentions. At present the interest rate is ...

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The following table lists some economic agents and their intentions. At present the interest rate is ...

The following table lists some economic agents and their intentions. At present the interest rate is 5 percent.

Who	Intent	Amount Needed
Mike	Save for child's college	$50,000
Sophie	Buy a car	$10,000
Pie's Pizza	Expand restaurant	$100,000
Sara	Save for retirement	$100,000

Refer to the table above. Why might Mike decide to decrease his saving?

▸ He wants to buy a new car.

▸ He loses his high-paying job.

▸ The interest rate is increasing.

▸ All the above statements could be true.

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

Read 24 times

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