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In a two-period model with default, if the market interest rate is low, then

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In a two-period model with default, if the market interest rate is low, then

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

Edition: 5^th

Author: Williamson

Read 166 times

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Gordis

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Solved In a two-period model with default, if the market interest rate is low, then

Ao9 Author

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8 years ago

You're sharp, thanks!

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Gordis

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#3

8 years ago

I'm assuming I was right? Wink Face

Don't forget to mark as solved.

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