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 218 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?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Changes in metabolic rate of selected structures in a mammal's body during different activities Changes in metabolic rate of selected structures in a mammal's body during different activities
The underside of a male (top) and a female (bottom) individual of Pachygrapsus marmoratus, showing t The underside of a male (top) and a female (bottom) individual of Pachygrapsus marmoratus, showing t
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 ...
Atmospheric pressure decreases with increase in altitude. Atmospheric pressure decreases with increase in altitude.
Factors Affecting the Environmental Lapse Rate (ELR): Heating or Cooling of the Lower Atmosphere Factors Affecting the Environmental Lapse Rate (ELR): Heating or Cooling of the Lower Atmosphere
Effect of an Increase in R&D in the Follower Country on the Steady State Effect of an Increase in R&D in the Follower Country on the Steady State
Video: The Pressure Flow Model in a Plant

For a complete list of videos, visit our video library