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If the Real Interest Rate Falls,people Decide to ________ Because

Question 90

Multiple Choice

If the real interest rate falls,people decide to ________ because the opportunity cost of ________.


A) increase their consumption expenditure;consumption has decreased
B) decrease their consumption expenditure;consumption has decreased
C) increase their consumption expenditure;saving has decreased
D) save more;saving has decreased
E) None of the above answers is correct.

Correct Answer:

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