Author Question: The substitution effect indicates that higher real interest rates ________ current consumption for ... (Read 100 times)

cmoore54

  • Hero Member
  • *****
  • Posts: 568
The substitution effect indicates that higher real interest rates ________ current consumption for households who are lenders and ________ current consumption for households who are borrowers.
 
  A) increase; increase
  B) increase; decrease
  C) decrease; increase
  D) decrease; decrease

Question 2

A decrease in matching efficiency
 
  A) can never happen.
  B) is due to a change in the productivity of firms.
  C) is not related to sectoral shocks.
  D) can explain the shift in the Beveridge curve.



robbielu01

  • Sr. Member
  • ****
  • Posts: 336
Answer to Question 1

D

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

For a complete list of videos, visit our video library