Bachelor of Commerce

Major:bachelor of commerce
Unit code:
1:You just need to finish the second one
2:You just need to finish the second one
If the real interest rate in the society is high, it will directly affect the saving. The goal is to get a higher payback in the future. Therefore, the real interest will lead to a rising rise. Assume that if the consumer’s income is constant, the increase will affect the assumption because Yd=Y-T is equal to C+S. Saving increases Y and therefore C decreases, so you can also know why the coefficient in front of r is negative because it represents the higher the interest rate. The higher the C, the real interest rate, the inverse relationship
Let me first say that if the society has the impact of RBA on the entire economy of society, the higher the real interest rate in society, the higher the saving, and the lower my consumption will be in the case of a giving level of income.