All else equal, the more people save, the higher the demand for debt capital will be,...

All else equal, the more people save, the higher the demand for debt capital will be, resulting in higher interest rates.

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True

False

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Expert Solution

False. The more people save, the more is supply of debt capital and lower is the interest rates as higher is the supply of debt capital lower is the interest rate.

jeff jeffy answered 2 years ago

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