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If the value of collateral falls for a consumer,

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If the value of collateral falls for a consumer,

If the value of collateral falls for a consumer,
A) current consumption must fall.
B) current consumption must rise.
C) future consumption must fall.
D) current consumption falls only if the collateral constraint binds.
E) current consumption falls only if the collateral constraint does not bind.

Textbook

Macroeconomics, Canadian Edition

Edition: 5^th

Author: Williamson

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