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Author Question: If the substitution effect is greater than the income effect, a decrease in interest rates will (Read 88 times)

CORALGRILL2014

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on: Apr 19, 2019

Question 1

Assume households have positive wealth. If the income effect is greater than the substitution effect, a decrease in interest rates will


◦ increase saving and decrease consumption spending by households.
◦ decrease saving and increase consumption spending by households.
◦ decrease both saving and consumption spending by households.
◦ increase both saving and consumption spending by households.

Question 2

If the substitution effect is greater than the income effect, a decrease in interest rates will


◦ increase saving and decrease consumption spending by households.
◦ decrease saving and increase consumption spending by households.
◦ decrease both saving and consumption spending by households.
◦ increase both saving and consumption spending by households.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by CORALGRILL2014 on Apr 19, 2019

ebenov

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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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CORALGRILL2014

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  • Posts: 525
Reply 2 on: Apr 19, 2019
YES! Correct, THANKS for helping me on my review

ryhom

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Reply 3 on: Yesterday
Excellent

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