Multiple Choice
If the substitution effect of the real interest rate on saving is smaller 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
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