Multiple Choice
A rise in the real interest rate ________ consumption expenditure and ________.
A) increases; shifts the consumption function upward
B) decreases; shifts the consumption function downward
C) increases; shifts the consumption function downward
D) decreases; shifts the consumption function upward
E) decreases; results in a movement downward along the consumption function
Correct Answer:
Verified
Correct Answer:
Verified
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