If the Real Interest Rate on Savings Accounts Decreases from 5

question 74

Multiple Choice

If the real interest rate on savings accounts decreases from 5% to 3%,all other things being equal,

• A) business investment spending for new capital decreases.
• B) business investment spending for new capital remains unchanged.
• C) people are less willing to save.
• D) people are more willing to save.
• E) the amount people will save remains unchanged.

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Definitions:

Crucial Conversation

A dialogue between two or more people where stakes are high, opinions differ, and emotions run strong.

Conflicts

Disagreements or disputes resulting from opposing needs, demands, or views between parties.

Destructive

Causing harm or damage, either physically, emotionally, or environmentally.

Lose/Lose

A conflict resolution or situation outcome where all parties involved suffer losses or negative consequences.