Asked by
Marucs Zhang
on Oct 14, 2024
Verified
Susan is a net borrower when the interest rate is 10% and a net saver when the interest rate is 20%.A decrease in the interest rate from 20% to 10% may make Susan worse off.
Net Borrower
An entity or individual that borrows more money than it lends, resulting in a net debt position.
Net Saver
An individual or entity that saves more money than they spend or invest, contributing positively to their financial assets over time.
- Understand the impact that variations in interest rates have on consumer tendencies towards borrowing and saving.
Verified Answer
JH
Learning Objectives
- Understand the impact that variations in interest rates have on consumer tendencies towards borrowing and saving.