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Ao9 Ao9
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8 years ago
An increase in the real interest rate is an example of a
A) substitution effect and a positive income effect.
B) substitution effect and an income effect whose sign depends on whether the consumer is initially a borrower or a lender.
C) substitution effect and a negative income effect.
D) pure substitution effect.
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Macroeconomics

Macroeconomics


Edition: 5th
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GordisGordis
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8 years ago
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Ao9 Author
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#2
8 years ago
You're sharp, thanks!
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#3
8 years ago
Glad to help...
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