What Effects Does a Higher Rate of Return Have on Saving

question 7

Multiple Choice

What effects does a higher rate of return have on saving?

• A) A higher rate of return has an income effect that discourages saving and a substitution effect that encourages saving.
• B) A higher rate of return has an income effect that encourages saving and a substitution effect that discourages saving.
• C) A higher rate of return has income and substitution effects that both decrease saving.
• D) A higher rate of return has income and substitution effects that both increase saving.

---

Definitions:

Project-Based

A learning approach where individuals gain knowledge and skills by working for an extended period of time to investigate and respond to a complex question, problem, or challenge.

Systems Documentation

Detailed information and manuals that describe the system specifications, architecture, and components for understanding, maintaining, and troubleshooting the system.

Technical Writer

A professional who creates clear, easy-to-understand documentation for technical and complex topics, such as user manuals and instructional materials.

Network Administrator

Person who maintains networks for a business or organization.