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NYC NYC
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8 years ago
If the substitution effect is greater than the income effect, a decrease in interest rates will:
A) stimulate saving and reduce consumption spending by households.
B) reduce saving and stimulate consumption spending by households.
C) reduce both saving and consumption spending by households.
D) stimulate both saving and consumption spending by households.
Textbook 
Principles of Macroeconomics

Principles of Macroeconomics


Edition: 11th
Authors:
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JesslynJesslyn
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NYC Author
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#2
8 years ago
I was thinking the same, thank you
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