Individuals will increase their saving as
A)the interest rate falls.
B)business investment falls.
C)the rate of unemployment increases.
D)the interest rate increases.

Question

Quizplus · Accepted Answer

As the interest rate increases, the benefits from saving also increase. This is because higher interest rates offer a higher rate of return on savings, which makes saving more attractive for individuals. Therefore, they are likely to increase their saving as the interest rate increases.

Individuals Will Increase Their Saving as