A Rise in the Interest Rate Will Generally Result in People

question 181

True/False

A rise in the interest rate will generally result in people consuming less when they are old if the substitution effect outweighs the income effect.

---

Definitions:

Study of Economics

The academic discipline that examines how individuals, businesses, governments, and nations make choices on allocating resources to satisfy their wants and needs.

Basic Truth

A fundamental, unquestionable fact or principle that serves as the foundation for a concept or belief system.

Economic Self-Interest

is a principle suggesting that individuals act in a way that maximizes their own benefits or gains, often driving economic decisions and actions.

Economic Behavior

The actions or decisions that individuals, households, businesses, and governments make in regard to the allocation of resources.