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please help Suppose that Valerie receives a pay raise of $1,100 per year. She can either use the extra money to consume goods and services,
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Suppose that Valerie receives a pay raise of $1,100 per year. She can either use the extra money to consume goods and services, or she can save it by depositing it in a bank For each of the alternative annual interest rates in the following table, indicate how much interest Valerie would earn per year on heamuwase she saves it. (Note: Assume that no income taxes are deducted) Interest Rate Interest tamned (Dollars) (Percent) (Dollars) 12 25 A lower interest rate gives Valerie Incentive to save The following graph shows a varied be curves representing the supply of waving more ? D 25 20 15 X INTEREST RATE (Percent) A 10 B 0 0 20 80 0 100 40 60 SAVING (Billions of dollars) INTEREST RATE (F A B 0 0 20 40 80 100 60 SAVING (Billions of dollars) Which of the curves on the previous graph best represents the relationship between the interest rate and the supply of saving? D Step by Step Solution
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