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As the rate of interest falls, a saver will never become a borrower

Economics

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1. As the rate of interest falls, a saver will never become a borrower. Analyze this statement carefully.

2. 3. (1 p.) Suppose that, initially, a worker chooses to work 8 hours per day if the basic wage rate is £8 per hour (and if there is no overtime premium) but chooses to work 10 hours per day if an overtime premium of £5 per hour is offered on hours worked in excess of 8. Analyse the effects on the individual's working hours of a simultaneous decrease in the basic wage rate to £7.50 per hour and an increase in the overtime premium to £7.50 per hour.