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    Macroeconomics Policy and Practice
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    Exam 18: Consumption and Saving
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    ________ Might Cause the Borrowing Constraint to Become Non-Binding,even Though
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________ Might Cause the Borrowing Constraint to Become Non-Binding,even Though

Question 6

Question 6

Multiple Choice

________ might cause the borrowing constraint to become non-binding,even though the consumer still cannot borrow.


A) An increase in future (expected) income
B) An increase in the real interest rate
C) A decrease in current income
D) A decrease in the real interest rate

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