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For a Consumer Bound by the The Collateral Constraint,a Reduction

Question 22

Multiple Choice

For a consumer bound by the the collateral constraint,a reduction in the price of the collateral leads to


A) nothing.
B) an increase in current consumption and a decrease in future consumption.
C) a decrease in current consumption and no change in future consumption.
D) a decrease in current and future consumption.
E) an increase in current and future consumption

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