Given a decrease in the real interest rate,the substitution effect will be ________ for lenders and ________ for borrowers.
A) negative; negative
B) negative; positive
C) positive; negative
D) positive; positive
Correct Answer:
Verified
Q1: Household consumption as a percentage of GDP
Q2: According to the permanent-income hypothesis,a permanent increase
Q4: Consumption smoothing is a consequence of the
A)
Q5: Given a decrease in the real interest
Q6: According to the permanent-income hypothesis,
A) the present
Q7: According to the life-cycle hypothesis,
A) the present
Q8: The tendency for households to consume an
Q9: According to the life-cycle hypothesis,
A) consumption during
Q10: According to the permanent-income hypothesis,a transitory increase
Q11: The intertemporal budget constraint tells us that
A)
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