An Increase in Expected Real Interest Rates Would Probably Cause

question 19

Multiple Choice

An increase in expected real interest rates would probably cause desired national saving to rise because

• A)less must be saved to reach a given saving target.
• B)the increased return makes saving more attractive.
• C)the government would respond by increasing expenditures.
• D)current interest rates would fall in response to higher expected real interest rates in the future.

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Definitions:

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Peek Feature

The Peek feature in some operating systems and applications allows users to preview content or applications without fully opening them.

Schedule

A plan for carrying out activities or events at specified times.

Cancel Meeting

The process of notifying attendees that a scheduled meeting or event will not take place.