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A Higher Interest Rate ________ and ________

Question 57

Multiple Choice

A higher interest rate ________ and ________.


A) reduces the present value of future income; reduces today's consumption
B) increases the present value of future income; increases today's consumption
C) increases the discount rate; increases today's consumption
D) is an incentive to borrow more today; reduces future consumption
E) reduces inflation; consumers spend more today

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