A Higher Rate of Return to Saving Has

question 132

Multiple Choice

A higher rate of return to saving has:

• A) income and substitution effects that both increase saving.
• B) an income effect that discourages saving and a substitution effect that encourages saving.
• C) an income effect that encourages saving and a substitution effect that discourages saving.
• D) income and substitution effects that both decrease saving.

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Definitions:

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A projective psychological test where individuals express their thoughts and feelings through the stories they make up about ambiguous scenes.