Suppose consumers lose their faith in the banking system, and decide to start stuffing their money under their mattress rather than saving it in a bank or buying bonds. This will cause interest rates to _____ and the amount borrowed to _____ increase or decrease?

Suppose consumers lose their faith in the banking system, and decide to start stuffing their money under their mattress rather than saving it in a bank or buying bonds. This will cause interest rates to _ and the amount borrowed to _ increase or decrease?

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter16: Monetary Policy

Section: Chapter Questions

Problem 1SQP

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