An increase in the real interest rate decrease the quantity of saving. has no ef

Question

An increase in the real interest rate decrease the quantity of saving. has no effect on saving shifts the saving supply curve rightward. increases the quantity of saving. increase current consumption. A fall in the shift of the saving supply curve. leftward shift of the saving supply curve. movement up along the saving supply curve. rightward shift of the investment demand curve. movement down along the saving supply curve. A decrease in expected future disposable income leads to a rightward shift of the investment demand curve. leftward shift of the investment demand curve. rightward shift of the saving supply curve. leftward shift of the saving supply curve. downward movement along the saving supply curve.

Explanation / Answer

All options are marked right.

With increase in real interest rate, people save more to earn interest.

A fall in interest rate, leads to decrease in savings and movement towards down the saving supply curve.

A decrease in expected future income leads to increase in current savings and this will shift savings curve to right.

Movement along savings curve happens in case of change in interest rate while factors other than interest rate shifts savings curve.

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