When the Real Interest Rate Falls, the Consumption Function

question 32

Multiple Choice

When the real interest rate falls, the consumption function

• A)shifts upward.
• B)does not shift and there is a movement downward along the consumption function.
• C)does not shift and there is no movement along the consumption function.
• D)does not shift and there is a movement upward along the consumption function.
• E)shifts downward.

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