The Substitution Effect of a Change in the Real Interest

question 66

Multiple Choice

The substitution effect of a change in the real interest rate is an example of

• A)an intertemporal substitution effect.
• B)a permanent substitution effect.
• C)a positive substitution effect.
• D)a temporary substitution effect.
• E)a negative substitution effect.

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Definitions:

Tax-Related Gains

Profits derived from tax strategies, deductions, or credits that reduce the overall tax liability.