Consider an Individual for Whom Consumption in Two Periods Is

question 16

Multiple Choice

Consider an individual for whom consumption in two periods is a normal good.Other things remaining the same,if the interest rate increases,then:

• A)he is worse off.
• B)he is better off.
• C)he will spend more in each period.
• D)he will choose to save more.

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Definitions:

External Validity

The generalizability of the findings in an investigation, or the degree to which the findings apply to other individuals in other settings.

Psychotherapy

A therapeutic treatment predominantly using psychological methods to help a person change behavior and overcome problems in desired ways.

Methodological Limitations

The constraints and weaknesses inherent in the design and tools of a research study that may affect the validity of its findings.