Question

If national savings increase, what happens to the interst rate

Answer 1

HEY MATE HERE IS YOUR ANSWER:-

Q) If national savings increase, what happens to the interst rate?

When the relative demand for loanable funds increases, the interest rate goes up. When the relative supply of loanable funds increases, the interest rate declines. ... For example, a central bank can make it cheaper to borrow and less valuable to save by lowering interest rates in the economy