The typical savings supply curve has a positive slope. If a nation's saving supply curve is perfectly vertical, what would that mean? People in this country save the same amount no matter what the interest rate is. People in this country are extremely sensitive to interest rates when deciding how much to save.
The typical savings supply curve has a positive slope. If a nation's saving supply curve is perfectly vertical, what would that mean? People in this country save the same amount no matter what the interest rate is. People in this country are extremely sensitive to interest rates when deciding how much to save.
Chapter1: Making Economics Decisions
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
Transcribed Image Text:The typical savings supply curve has a positive slope. If a nation's saving supply curve
is perfectly vertical, what would that mean?
People in this country save the same amount no matter what the interest rate is.
People in this country are extremely sensitive to interest rates when deciding
how much to save.
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