Multiple Choice
If the real interest rate decreases, people decide to ________ because the opportunity cost of ________.
A) increase their consumption expenditure; saving has decreased.
B) increase their consumption expenditure; consumption has decreased.
C) decrease their consumption expenditure; consumption has decreased.
D) save more; saving has decreased.
E) None of the above answers are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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