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Economics!!!!!!!

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Sijan92

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08 Nov p2 q2(d)

Analyze how a central bank might influence consumer saving. (6)

CAn anyone please provide a sample answer to this?
 
D

dasani

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By raising the interest rate or fall in interest rate. If central bank increase interest rate consumer will save more and spent lower amount of their proportion of income on consumption. However, this will discourage foreign investors to come and settle in the country.
Therefor, if central bank decreased the interest rate then consumer will save less and spent more in consumption and etc.............
 
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