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NYC NYC
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8 years ago
Assume households have positive wealth. If the income effect is ________ the substitution effect, a decrease in interest rates will increase saving and decrease consumption spending by households.
A) less than
B) equal to
C) unrelated to
D) greater than
Textbook 
Principles of Macroeconomics

Principles of Macroeconomics


Edition: 11th
Authors:
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JesslynJesslyn
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8 years ago
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NYC Author
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#2
8 years ago
Good answer, thanks.
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