This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If an individual is a debtor, an increase in the interest rate (Read 178 times)

geodog55

  • Hero Member
  • *****
  • Posts: 530
on: Apr 19, 2019

Question 1

Assume that Krystal has positive wealth. As the interest rate increased, Krystal increased her current consumption. For Krystal


◦ the substitution effect of an interest rate increase outweighs the income effect.
◦ the income effect of an interest rate increase outweighs the substitution effect.
◦ the substitution effect of an interest rate increase must be zero.
◦ the income effect of an interest rate increase must equal the substitution effect.

Question 2

If an individual is a debtor, an increase in the interest rate


◦ increases current consumption.
◦ decreases current consumption.
◦ has no effect on current consumption.
◦ will either increase or decrease current consumption depending on the size of the income and substitution effects.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by geodog55 on Apr 19, 2019

Sophiapenny

  • Sr. Member
  • ****
  • Posts: 339
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.
Answer Preview
Only 56% of students answer this correctly


geodog55

  • Hero Member
  • *****
  • Posts: 530
Reply #2 on: Apr 19, 2019
Excellent


Sophiapenny

  • Sr. Member
  • ****
  • Posts: 339
Reply #3 on: Apr 19, 2019
Great! Please up vote :D


rebeccaeksal

  • Newbie
  • *
  • Posts: 1
Reply #4 on: Mar 28, 2022
thank you


« previous next »
 

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Cellular mechanisms that increase protein diversity Cellular mechanisms that increase protein diversity
Effects of growth rate on development. Effects of growth rate on development.
Unique markings identify individual humpback whales. Unique markings identify individual humpback whales.
Many diesel fuel additives increase the cetane rating which results in improved fuel economy. Many diesel fuel additives increase the cetane rating which results in improved fuel economy.
Digestion converts whole foods into individual nutrients that can be used by the body’s cells Digestion converts whole foods into individual nutrients that can be used by the body’s cells
Total Fertility Rate in the United States, 1860–2008 Total Fertility Rate in the United States, 1860–2008
Video: Rh blood type and complications during pregnancy & Fertilization

For a complete list of videos, visit our video library