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Author Question: Assume that households have positive wealth. Which of the following explains how the income effect ... (Read 62 times)

Pineapplelove6

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on: Apr 19, 2019

Assume that households have positive wealth. Which of the following explains how the income effect of an interest rate increase affects consumption?


◦ As the interest rate increases, the opportunity cost of current consumption falls, and therefore current consumption increases.
◦ As the interest rate increases, permanent income increases and future consumption increases.
◦ As the interest rate increases, expected future income increases and future consumption increases.
◦ As the interest rate increases, nonlabor income increases and current consumption increases.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by Pineapplelove6 on Apr 19, 2019

ecabral0

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Pineapplelove6

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Reply 2 on: Apr 19, 2019
YES! Correct, THANKS for helping me on my review

coreycathey

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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