What Could Be Caused by the Substitution Effect of an Increase

question 148

Multiple Choice

What could be caused by the substitution effect of an increase in the interest rate

• A)an increase in consumption and saving when young
• B)an increase in consumption when old and saving when young
• C)an increase in consumption when young and saving when old
• D)an increase in consumption and saving when old

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Definitions:

Enacted Special Legislation

Laws that have been passed to address specific issues, often pertaining to a particular locality or group, rather than general or widespread concerns.

Transfer of Shares

The process of moving ownership of shares from one party to another, either through sale, gift, or inheritance, commonly documented by a stock transfer form.

De Facto Corporation

A business entity that operates like a corporation but without legal incorporation status, often recognized by courts for liability purposes.

Defective Incorporation

A legal term referring to the situation where a company has been incorrectly or incompletely formed, potentially affecting its legal status and liabilities.