Multiple Choice
An increase in the interest rate:
A) makes future consumption more expensive.
B) increases future income.
C) makes present consumption cheaper.
D) all of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q10: A discount factor is used to deflate
Q11: If a person wins €500 in a
Q12: An intertemporal substitution effect is caused by
Q13: Show the relationship between the household budget
Q14: The aggregate household budget constraint is consumption
Q16: When the labour and capital markets clear:<br>A)depreciation
Q17: If the household budget constraint is aggregated
Q18: In the one period budget constraint the
Q19: An increase in the interest rate:<br>A)makes future
Q20: Real saving in year one is:<br>A)real bonds