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A Change in Interest Rates Would Shift the Consumption Schedule

Question 11

Multiple Choice

A change in interest rates would shift the consumption schedule and the saving schedule ______; a change in taxes would shift these two schedules ______.


A) In the same direction; also in the same direction
B) In the same direction; in opposite directions
C) In opposite directions; also in opposite directions
D) In opposite directions; in the same direction

Correct Answer:

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