Examlex
Distinguish between the two main kinds of mutual funds.
Interest-Rate Increase
A rise in the cost of borrowing money, reflected in a higher percentage charged on loans and credits.
Consumer Optimum
A state where a consumer has allocated their resources in such a way that maximizes their utility, given their budget constraint.
Income Effect
The change in consumption that results from changes in real income, affecting the purchasing power of consumers.
Substitution Effect
The economic understanding that as prices rise or income decreases, consumers replace more expensive items with less costly alternatives.
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