An increase in the real interest rate leads to
A)an upward movement along the consumption share line.
B)a rightward shift in the consumption share line.
C)a downward movement along the consumption share line.
D)a leftward shift in the consumption share line.
E)an ambiguous effect on the consumption share line.

Question

Quizplus · Accepted Answer

The Answer of An increase in the real interest rate leads to
A)an upward movement along the consumption share line.
B)a rightward shift in the consumption share line.
C)a downward movement along the consumption share line.
D)a leftward shift in the consumption share line.
E)an ambiguous effect on the consumption share line.

An Increase in the Real Interest Rate Leads to