When the Real Interest Rate Rises, There Is

question 50

Multiple Choice

When the real interest rate rises, there is

• A) an upward movement along the consumption function.
• B) a downward movement along the consumption function.
• C) neither a shift of the consumption function nor a movement along the consumption function.
• D) an upward shift of the consumption function.
• E) a downward shift of the consumption function.

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