Question: Which of the following is likely to decrease the level of interest rates in the economy? Assume that households are the primary supplier of capital
Which of the following is likely to decrease the level of interest rates in the economy? Assume that households are the primary supplier of capital in the economy and that businesses (corporations) are the primary demander. Households start saving a greater percentage of their income. Assume that households are willing to loan their savings to corporations. Corporations step up their plans for expansion and increase their demand for capital. The level of inflation is expected to increase. More than one of the above statements is correct. None of the statements above are correct
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