Higher Savings Usually Requires Higher Interest Rates Because

question 115

Multiple Choice

Higher savings usually requires higher interest rates because:

• A) everyone prefers to save more instead of consuming.
• B) saving requires sacrifice and people must be compensated for this sacrifice.
• C) higher savings means we expect interest rates to decrease.
• D) of the rule of 72.

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Definitions:

Identity

The sense of self, encompassing personal, social, and cultural identities and how these are expressed and perceived.

Intimacy

In Erikson’s theory, the ability to form close, loving relationships; a primary developmental task in young adulthood.

Competence

The ability to do something successfully or efficiently, often measured against a standard.

Autonomy

The ability or right of individuals to make their own choices and decisions independently, free from external influence or coercion.