× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
5
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
New Topic  
Mairoon Mairoon
wrote...
Posts: 850
Rep: 0 0
6 years ago
Suppose that the interest rate paid to savers increases. As a result, Tom wishes to save more. This suggests that, for Tom,
A) the substitution effect is greater than the income effect.
B) the income effect is greater than the substitution effect.
C) utility maximization is not occurring.
D) future consumption is a luxury.
Textbook 
Microeconomics

Microeconomics


Edition: 6th
Author:
Read 32 times
1 Reply

Related Topics

Replies
wrote...
6 years ago
A
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  1274 People Browsing
Related Images
  
 1570
  
 171
  
 136
Your Opinion
Who's your favorite biologist?
Votes: 586