An increase in interest rates might ________ saving because more can be earned in interest income.
encourage
An increase in interest rates might encourage saving because more can be earned in interest income. When interest rates increase, people are more likely to save their money because they can earn a higher return on their savings. This can be beneficial for individuals who are saving for retirement or other long-term goals. Additionally, higher interest rates can lead to increased investment in the economy, which can lead to economic growth and job creation. However, an increase in interest rates can also make borrowing more expensive, which can decrease spending and slow down economic activity in the short run.
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