An income effect is the response of households to changes in the present value of:
A) relative prices.
B) sources of funds.
C) uses of funds.
D) assets at the end of year two.
Correct Answer:
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Q16: Figure 7.1 Q17: A discount factor is used to deflate Q18: If the value of initial assets increases, Q19: The aggregate household budget constraint is consumption Q20: Real saving in year one is: Q22: An increase in the interest rate: Q23: In the one period budget constraint the Q24: The measure used to reduce future consumption Q25: Utility in economics is: Q26: In the one period budget constraint the
A)real bonds
A)makes future
A)a product with a
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