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  3. Study Set
    Microeconomics
  4. Exam
    Exam 8: Wealth and Substitution Effects in Labor and Capital Markets
  5. Question
    Assuming No Kinks in Indifference Curves and Assuming Our Usual
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Assuming No Kinks in Indifference Curves and Assuming Our Usual

Question 3

Question 3

True/False

Assuming no kinks in indifference curves and assuming our usual assumptions about tastes hold, someone who currently neither saves nor borrows will begin to borrow when the interest rate falls.

Correct Answer:

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