A Higher Rate of Return on Saving Has

question 38

Multiple Choice

A higher rate of return on saving has

• A)an income effect that discourages saving and a substitution effect that encourages saving.
• B)an income effect that encourages saving and a substitution effect that discourages saving.
• C)income and substitution effects that both decrease saving.
• D)income and substitution effects that both increase saving.

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Definitions:

Brachial

Pertaining to the arm, especially the upper arm, or an arm-like structure.

Radial

Pertaining to the radius bone in the forearm or relating to structures that are located near or radiate from a central point.

Sciatic Nerve

Tibial and common peroneal nerves bound together; also called ischiadic nerve.

Tibial Nerve

A nerve in the lower leg that is a branch of the sciatic nerve, responsible for innervating parts of the lower leg and foot.