A Higher Real Interest Rate Has Both Positive and Negative

question 233

Multiple Choice

A higher real interest rate has both positive and negative effects on saving;

• A) it increases the reward for saving,but decreases the amount people need to save each year to reach a specific target.
• B) it increases the reward for saving,and increases the amount people need to save each year to reach a specific target.
• C) it decreases the reward for saving,and decreases the amount people need to save each year to reach a specific target.
• D) it decreases the reward for saving,but increases the amount people need to save each year to reach a specific target.
• E) it initially increases,then decreases,the reward for saving,but decreases the amount people need to save each year to reach a specific target.

---

Definitions:

Social Interest

A concept in psychology that refers to an individual's attitude towards and level of engagement with their community and society at large.

Alfred Adler

An Austrian medical doctor and psychotherapist who is best known for his theories on the importance of feelings of inferiority and the development of lifestyle.

Inferiority Complex

A psychological condition where an individual feels a deep sense of incompetence, underachievement, or inadequacy, often leading to overcompensation in other areas.

Alfred Adler

An Austrian psychiatrist and founder of Individual Psychology, which emphasizes the importance of feelings of inferiority and the creative self in personality development.