An increase in real interest rates will ________ current consumption for households who are lenders and will ________ current consumption for households who are borrowers.
A) increase; decrease
B) decrease; increase
C) have an unclear effect on; decrease
D) decrease; have an unclear effect on

Question

Quizplus · Accepted Answer

The Answer of An increase in real interest rates will ________ current consumption for households who are lenders and will ________ current consumption for households who are borrowers.
A) increase; decrease
B) decrease; increase
C) have an unclear effect on; decrease
D) decrease; have an unclear effect on

An Increase in Real Interest Rates Will ________ Current Consumption