A borrower cannot become a saver if the rate of interest decreases, but might become a saver if the rate of interest increases. Is this true or false? Carefully explain your answer (which must prove or disprove each part of the statement) using any appropriate diagrams.
A borrower cannot become a saver if the rate of interest decreases, but might become a saver if the rate of interest increases. Is this true or false? Carefully explain your answer (which must prove or disprove each part of the statement) using any appropriate diagrams.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter18: Savings,investment And The Financial System
Section: Chapter Questions
Problem 5PA
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