If the Interest Rate Rises, an Individual Could Choose to

question 379

Multiple Choice

If the interest rate rises, an individual could choose to

• A)increase consumption when young.
• B)increase consumption when old.
• C)decrease consumption when young.
• D)Any of the above could be correct.

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Definitions:

Incidental Beneficiaries

Individuals or entities that unexpectedly benefit from a contract, despite not being directly involved in its formulations.

Creditor Beneficiary

A third party that benefits from a contract made between two other parties, especially regarding debt repayment.

Donee Beneficiary

In contract law, a person who benefits from the execution of a contract, though not one of the principle parties involved.

Incidental Beneficiary

A third party who benefits from a contract indirectly or unintentionally, without being a direct party to the agreement.