Explain shift in attitude using proper economic terminology

Reference no: EM13182005

Suppose that there is a cultural shift in America emphasizing the importance of saving money as opposed to current consumption.

a.) Illustrate the impact on the interest rate in the market for loanable funds. What direction does the interest rate go?

b.) How would you explain this shift in attitude using proper economic terminology? Interest rate: __

Reference no: EM13182005

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