Multiple Choice
If the substitution effect of the real interest rate on saving is larger than the income effect of the real interest rate on saving,then a rise in the real interest rate leads to a ________ in consumption and a ________ in saving,for someone who's a lender.
A) fall; fall
B) fall; rise
C) rise; rise
D) rise; fall
Correct Answer:

Verified
Correct Answer:
Verified
Q8: Rachel earns nothing during her learning period,1100
Q9: Sally will earn $30,000 this year and
Q10: Suppose you divide your life into two
Q11: Three factors that cause interest rates among
Q12: Onerous regulations on businesses that take effect
Q14: The nominal interest rate is 10%,the expected
Q15: Which of the factors listed below might
Q16: Use a saving-investment diagram to explain what
Q17: When a person receives an increase in
Q18: If the stock market value of a