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

---

Definitions:

Categorical Syllogism

A form of deductive reasoning consisting of a major premise, a minor premise, and a conclusion, each of which is a categorical proposition.

Identical Terms

Phrases or words that have the exact same meaning in a particular context, often used interchangeably.

Autobiographical Memory

The aspect of memory concerned with the recollection of personal experiences and events from one's life.

Episodic Memory

A type of long-term memory that involves recollection of specific events, situations, and experiences, including the context and emotions associated.