For a Borrower,an Increase in the Real Interest Rate

question 47

Multiple Choice

For a borrower,an increase in the real interest rate

• A) definitely reduces current consumption and increases future consumption.
• B) reduces current consumption and has an uncertain effect on future consumption.
• C) has an uncertain effect on current consumption and increases future consumption.
• D) has an uncertain effect on both current and future consumption.
• E) definitely reduces current consumption and future consumption.

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Definitions:

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Temporal Association

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