Which of the following is true about the interest rate and saving?
A)For a saver,the income and substitution effects of an increase in interest rate work in the same directions.
B)For a borrower,the income and substitution effects of an increase in interest rate work in the same directions.
C)For a saver,the income effect of an increase in the interest rate is negative,but the substitution effect is positive.
D)For a borrower,the income and substitution effects of an increase in interest rate work in the opposite directions.

Question

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The Answer of Which of the following is true about the interest rate and saving?
A)For a saver,the income and substitution effects of an increase in interest rate work in the same directions.
B)For a borrower,the income and substitution effects of an increase in interest rate work in the same directions.
C)For a saver,the income effect of an increase in the interest rate is negative,but the substitution effect is positive.
D)For a borrower,the income and substitution effects of an increase in interest rate work in the opposite directions.

Which of the Following Is True About the Interest Rate