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smitch6 smitch6
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7 years ago
An increase in the real interest rate is an example of a
A) pure substitution effect.
B) substitution effect and a positive income effect.
C) substitution effect and a negative income effect.
D) substitution effect and an income effect whose sign depends on whether the consumer is initially a borrower or a lender.
E) positive substitution effect and a negative income effect.
Textbook 
Macroeconomics, Canadian Edition

Macroeconomics, Canadian Edition


Edition: 5th
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Blade73Blade73
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7 years ago
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smitch6 Author
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7 years ago
Just got PERFECT on my quiz
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Helped a lot
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