Multiple Choice
An increase in the real interest rate
A) increases savings for both borrowers and lenders.
B) increases savings for borrowers, but has an uncertain effect on the savings of lenders.
C) increases savings for lenders, but has an uncertain effect on the savings of borrowers.
D) has an uncertain effect on the savings of both borrowers and lenders.
Correct Answer:
Verified
Correct Answer:
Verified
Q8: For a borrower in a (c,c')graph,the optimal
Q9: If government spending does not change,an increase
Q10: For a lender,an increase in the real
Q11: An increase in first-period income results in<br>A)
Q12: The Ricardian Equivalence says<br>A) whatever the level
Q14: A temporary increase in income today leads
Q15: The Ricardian Equivalence holds only if<br>A) the
Q16: For a borrower,an increase in the real
Q17: Why don't consumers work in the two-period
Q18: Why is it important that consumers respond