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    Principles of Macroeconomics Study Set 11
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    Exam 16: Household and Firm Behavior in the Macroeconomy: a Further Look
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    Assume People Have Positive Wealth
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Assume People Have Positive Wealth

Question 76

Question 76

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Assume people have positive wealth. Explain how the income effect of an increase in interest rates can affect consumption.

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As the interest rate...

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