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Figure 21-25 The Figure Below Illustrates the Preferences for a Representative Consumer

Question 388

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Figure 21-25
The figure below illustrates the preferences for a representative consumer, Christopher.
Figure 21-25 The figure below illustrates the preferences for a representative consumer, Christopher. -Refer to Figure 21-25.Interest rates increase by 3 percent.Christopher's optimal choice point moves from A to B.Christopher consumes A) less while he is younger and saves more than he did before interest rates increased. B) more while he is younger and saves more than he did before interest rates increased. C) less while he is younger and saves less than he did before interest rates increased. D) more while he is younger and saves less than he did before interest rates increased.
-Refer to Figure 21-25.Interest rates increase by 3 percent.Christopher's optimal choice point moves from A to B.Christopher consumes


A) less while he is younger and saves more than he did before interest rates increased.
B) more while he is younger and saves more than he did before interest rates increased.
C) less while he is younger and saves less than he did before interest rates increased.
D) more while he is younger and saves less than he did before interest rates increased.

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