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.
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 3.7P
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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.
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