Which of the following graphs shows the correct effect on the consumption function when there is an increase in real interest rates and the substitution effect is dominant?

A)Figure A
B)Figure B
C)Figure C
D)Figure D

Question

Which of the following graphs shows the correct effect on the consumption function when there is an increase in real interest rates and the substitution effect is dominant?

A)Figure A 
B)Figure B 
C)Figure C 
D)Figure D

Quizplus · Accepted Answer

The Answer of Which of the following graphs shows the correct effect on the consumption function when there is an increase in real interest rates and the substitution effect is dominant?

A)Figure A 
B)Figure B 
C)Figure C 
D)Figure D

Which of the Following Graphs Shows the Correct Effect on the Consumption