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Author Question: The substitution effect indicates that higher real interest rates ________ current consumption for ... (Read 35 times)

cmoore54

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on: Jun 30, 2018
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

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

D


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