For a lender, an increase in the real interest rate
A) definitely reduces current consumption and increases future consumption.
B) reduces current consumption and has an uncertain effect on future consumption.
C) has an uncertain effect on current consumption and increases future consumption.
D) has an uncertain effect on both current and future consumption.
E) definitely reduces current consumption and future consumption.

Question

Quizplus · Accepted Answer

The Answer of For a lender, an increase in the real interest rate
A) definitely reduces current consumption and increases future consumption.
B) reduces current consumption and has an uncertain effect on future consumption.
C) has an uncertain effect on current consumption and increases future consumption.
D) has an uncertain effect on both current and future consumption.
E) definitely reduces current consumption and future consumption.

For a Lender, an Increase in the Real Interest Rate