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    Microeconomics
  4. Exam
    Exam 8: Wealth and Substitution Effects in Labor and Capital Markets
  5. Question
    When Tastes Over Current and Future Consumption Take the Cobb-Douglas
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When Tastes Over Current and Future Consumption Take the Cobb-Douglas

Question 2

Question 2

True/False

When tastes over current and future consumption take the Cobb-Douglas form, interest rates have no impact on savings when income is earned in the current period but not in the future.

Correct Answer:

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