undermine the expansion of saving

From this we can infer that, by restricting present consumption, individuals save in order to have more goods for the future, which can either be consumed later or invested. Furthermore, increased saving lowers the premium of the present consumption versus the future consumption (i.e., to the decline in the interest rate). Conversely, factors that undermine the expansion of saving are likely to increase the premium of the present consumption versus the future consumption (i.e., to the increase in the interest rate, all other things being equal). According to many popular views, changes in economic activity are positively associated with interest rates. However, if the increase in economic activity is because of the expansion of savings, this produces a decline in the time preferences, and thus to the lowering of interest rates and not an increase, as the popular framework suggests. สล็อต