Multiple Choice
If the interest rate on student loans _______, students will ________.
A) rises from 6 percent to 12 percent; increase their saving in order to pay back the loan sooner
B) rises from 6 percent to 12 percent; increase their consumption before it becomes too expensive
C) falls from 6 percent to 1 percent; increase their saving in order to pay back the loan sooner
D) falls from 6 percent to 1 percent; not change their saving but will change their investment
E) None of the above answers are correct.
Correct Answer:
Verified
Related Questions
Q112: As the real interest rate rises, the
Q113: When disposable income increases, saving will
A) decrease
Q114: If the disposable income decreases, then
A) the