A rise in the real interest rate ________ consumption expenditure and ________.
A) decreases; shifts the consumption function upward
B) decreases; results in a movement downward along the consumption function
C) increases; shifts the consumption function upward
D) increases; shifts the consumption function downward
E) decreases; shifts the consumption function downward

Question

Quizplus · Accepted Answer

The Answer of A rise in the real interest rate ________ consumption expenditure and ________.
A) decreases; shifts the consumption function upward
B) decreases; results in a movement downward along the consumption function
C) increases; shifts the consumption function upward
D) increases; shifts the consumption function downward
E) decreases; shifts the consumption function downward

A Rise in the Real Interest Rate ________ Consumption Expenditure