If the Substitution Effect of the Real Interest Rate on Saving

question 13

Multiple Choice

If the substitution effect of the real interest rate on saving is larger than the income effect of the real interest rate on saving,then a rise in the real interest rate leads to a ________ in consumption and a ________ in saving,for someone who's a lender.

• A)fall; fall
• B)fall; rise
• C)rise; rise
• D)rise; fall

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Definitions:

EFI Partition

A partition on a hard drive used as a part of the UEFI (Unified Extensible Firmware Interface) to store boot files and drivers.

BIOS

Basic Input/Output System (BIOS) is firmware used to perform hardware initialization during the booting process and to provide runtime services for operating systems and programs.

Operating System

Software that manages computer hardware and software resources and provides common services for computer programs.

RAID

Redundant Array of Independent Disks, a data storage virtualization technology that combines multiple physical disk drive components into one or more logical units for redundancy or performance improvement.