Why saving may not be very sensitive to real interest rate, Microeconomics

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Why saving may not be very sensitive to real interest rate

Problem

What determines the level of saving? Explain why, if taxes are fixed, disposable income in a full-employment economy is fixed. Explain why saving may not be very sensitive to the real interest rate.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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