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    Principles of Economics Study Set 12
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    Exam 19: The Spending Allocation Model
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    An Increase in the Real Interest Rate Will Shift the Consumption
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An Increase in the Real Interest Rate Will Shift the Consumption

Question 79

Question 79

True/False

An increase in the real interest rate will shift the consumption share line to the left because there will be an incentive to save more and consume less.

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