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 240 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?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha
When using forearm pressure on the top of the shoulder, push with your back foot to increase your ... When using forearm pressure on the top of the shoulder, push with your back foot to increase your ...
Maslow’s hierarchy of needs proposes that lower needs dominate the individual’s motivations and ... Maslow’s hierarchy of needs proposes that lower needs dominate the individual’s motivations and ...
Static Stability & Environmental Lapse Rate Static Stability & Environmental Lapse Rate
Population growth rate % Population growth rate %
Outgroup role in relative rate test Outgroup role in relative rate test
Video: Type of Transport - Active and Passive Processes

For a complete list of videos, visit our video library