Multiple Choice
In practice,it is usual to assume that,in explaining the impact of a change in interest rates ________.
A) the substitution effects outweigh the income effects
B) the income effect outweighs the substitution effect
C) the income and substitution effects cancel out with one another
D) the income effect increases the severity of the substitution effect
Correct Answer:
Verified
Correct Answer:
Verified
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