For a Lender, an Increase in the Real Interest Rate

question 52

Multiple Choice

For a lender, an increase in the real interest rate

• A)reduces current consumption and has an uncertain effect on future consumption.
• B)has an uncertain effect on both current and future consumption.
• C)definitely reduces current consumption and increases future consumption.
• D)definitely reduces current consumption and future consumption.
• E)has an uncertain effect on current consumption and increases future consumption.

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