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Ao9 Ao9
wrote...
Posts: 1908
Rep: 1 0
8 years ago
In a two-period model with default, if the market interest rate is low, then
A) default is more likely
B) there is no effect on the nation's default decision.
C) the income effect is larger than the substitution effect.
D) default is less likely.
Textbook 
Macroeconomics

Macroeconomics


Edition: 5th
Author:
Read 165 times
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GordisGordis
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Top Poster
Posts: 1906
8 years ago
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Ao9 Author
wrote...
8 years ago
You're sharp, thanks!
wrote...
8 years ago
I'm assuming I was right? Wink Face Don't forget to mark as solved.
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