The Tendency to Reduce Current Consumption and Increase Future Consumption

question 63

Multiple Choice

The tendency to reduce current consumption and increase future consumption as the real interest rate increases is called

• A)the substitution effect of the real interest rate on saving.
• B)the income effect of the real interest rate on saving.
• C)the net effect of the real interest rate on saving.
• D)the substitution effect of the real interest rate on investment.

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Definitions:

Cajun Food

A style of cooking originating in Louisiana, USA, that uses a mixture of French, African, American, and French-Canadian cultures, known for its spicy flavors and heartiness.

Goal Set

The process or result of establishing objectives to be achieved within a certain timeframe, often involving specific, measurable actions.

Sensory Appeal

The attractiveness of something that affects one or more of the five senses, making it appealing or desirable.

Food Behavior

The habits and practices associated with food consumption.