How is the national saving schedule for the economy drawn as it relates to real interest rates?
A)as a horizontal line
B)as a vertical line
C)as a downward sloping line
D)as an upward sloping line

Question

Quizplus · Accepted Answer

The national saving schedule is typically drawn as an upward sloping line because higher real interest rates provide more incentive for households and firms to save, thus increasing the total amount of savings in the economy.

How Is the National Saving Schedule for the Economy Drawn