If an Increase in the Interest Rate Raises Savings, Then

question 390

Multiple Choice

If an increase in the interest rate raises savings, then

• A)the substitution effect is greater than the income effect.
• B)the income effect is greater than the substitution effect.
• C)the income effect and the substitution effect move in the same direction.
• D)we are unable to determine the sizes of the income and substitution effects without more information.

---

Definitions:

Populations

Groups of individuals, particularly in the context of biostatistics and epidemiology, where health trends and outcomes are studied.

Health Problems

Issues affecting the physical or mental health of individuals, ranging from minor ailments to serious diseases.

Obesity

A medical condition characterized by excessive body fat that increases the risk of health problems such as heart disease, diabetes, and high blood pressure.

Health Expectancy

A statistic that combines life expectancy with the proportion of life expected to be spent in good health or free from chronic disease.