Question 3 (1 point)

What is the incentive for someone who saves money?

A. Interest
B. Time
C. Debt
D. Wages

Question

Amandahernandezmoreiidn Amandahernandezmoreiidn

21-06-2024
Business

Answered

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Question 3 (1 point)

What is the incentive for someone who saves money?

A. Interest
B. Time
C. Debt
D. Wages

Sagot :

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GinnyAnsweridn GinnyAnsweridn · Answer 1 · 2024-06-21T21:52:23-04:00

Final answer:

Interest rates incentivize saving by allowing individuals to earn rewards and increase future income through saving.

Explanation:

Interest rates serve as a reward for individuals who choose to save money rather than immediately consume. By saving and earning interest, individuals can increase their income in the future. However, the impact of higher interest rates on encouraging more saving is not guaranteed due to the conflicting income and substitution effects.

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