Multiple Choice
The consumption share line is
A) downward-sloping because an increase in the real interest rate will increase current consumption.
B) downward-sloping because a decrease in the real interest rate will raise the price of consuming today rather than tomorrow.
C) downward-sloping because a decrease in the real interest rate will reduce the price of consuming today rather than tomorrow.
D) upward-sloping because an increase in the real interest rate will increase saving and future consumption.
E) upward-sloping because an increase in the real interest rate will increase current consumption.
Correct Answer:
Verified
Correct Answer:
Verified
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