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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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    Using the Substitution Effect, Explain the Likely Impact of a Decrease
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Using the Substitution Effect, Explain the Likely Impact of a Decrease

Question 88

Question 88

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Using the substitution effect, explain the likely impact of a decrease in the interest rate on household consumption.

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If the interest rate drops thi...

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