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Economics · May / June 2025 · Paper 11 · Question 11

2281Households

If interest rates fall, what will be the most likely effect on saving and borrowing?

  1. Asaving: decrease; borrowing: decrease
  2. Bsaving: decrease; borrowing: increase
  3. Csaving: increase; borrowing: decrease
  4. Dsaving: increase; borrowing: increase

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Correct answer: B. saving: decrease; borrowing: increase

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