As the Interest Rate Increases, Consumers Will Tend to Increase

question 112

Multiple Choice

As the interest rate increases, consumers will tend to increase their amount of saving due to

• A)increased profit
• B)their greater reliance on borrowing
• C)the lower opportunity cost of current consumption
• D)diminishing marginal utility
• E)the higher opportunity cost of current consumption

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Definitions:

Paradoxical Directives

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Jay Haley

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