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Author Question: When interest rates decrease, the substitution effect suggests that individuals will (Read 13 times)

Chelseaamend

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on: Apr 19, 2019

Question 1

A fall in the interest rate


◦ decreases the opportunity cost of consuming today.
◦ increases the opportunity cost of consuming in the future.
◦ increases the opportunity cost of consuming today.
◦ decreases the opportunity cost of consuming in the future.

Question 2

When interest rates decrease, the substitution effect suggests that individuals will


◦ consume more today.
◦ save more today.
◦ consume more in the future.
◦ save more and consume less today.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by Chelseaamend on Apr 19, 2019

Animal_Goddess

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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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Chelseaamend

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Reply #2 on: Apr 19, 2019
Thanks


Animal_Goddess

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Reply #3 on: Apr 19, 2019
Welcome :)


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