An Increase in the Real Interest Rate

question 8

Multiple Choice

An increase in the real interest rate

• A)increases savings for lenders, but has an uncertain effect on the savings of borrowers.
• B)reduces savings for both borrowers and lenders.
• C)increases savings for borrowers, but has an uncertain effect on the savings of lenders.
• D)increases savings for both borrowers and lenders.
• E)has an uncertain effect on the savings of both borrowers and lenders.

---

Definitions:

Infant-Father Attachment

The unique emotional bond that develops between an infant and their father, affecting the child's development and emotional well-being.

Marital Relationship

The interpersonal and legal bonds between individuals in marriage, encompassing emotional, social, and sometimes religious or legal commitments.

Secure Base

A concept in attachment theory referring to the role of primary caregivers as a dependable foundation from which children explore the world and return to for comfort and safety.

Avoidant Attachment

A type of insecure attachment characterized by apparent indifference to the leave-takings of, and reunions with, an attachment figure.