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    Exam 9: A Two-Period Model: The Consumption-Savings Decision and Credit Markets
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    A Temporary Increase in Income Today Leads to
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A Temporary Increase in Income Today Leads to

Question 14

Question 14

Multiple Choice

A temporary increase in income today leads to


A) a small increase in current consumption.
B) a large increase in current consumption.
C) a small decrease in future consumption.
D) a large decrease in future consumption.

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