According to the income effect, a rise in interest rates may cause individuals to save more in an effort to reach their savings goal more rapidly.

Name: According to the income effect, a rise in interest rates may cause individuals to save more in an effort to reach their savings goal more rapidly.
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The income effect suggests that a rise in interest rates may cause individuals to save less because they can achieve their savings goals with less saving due to higher returns on their savings.

According to the Income Effect, a Rise in Interest Rates