How would a decrease in real interest rate affect decision


Problem

Assume you have saved $20,000 and that you are considering a couple of options. One of them is to use these funds as a down payment to buy a newly built house. The other one is to buy a U.S. savings bond.

a) Which option will add to the economy's capital stock and which one will not? Explain why.

b) How would a decrease in the real interest rate affect your decision?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: How would a decrease in real interest rate affect decision
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