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:

Eysenck

Refers to Hans Eysenck, a psychologist who developed theories related to personality and its biological basis.

Psychotherapy

A therapeutic treatment involving psychological techniques, designed to assist individuals to overcome difficulties or achieve personal growth.

Demonstrable Effect

An outcome or result that can be clearly observed and proven through evidence or demonstration.

Psychotherapy

A method of treating mental disorders by talking about mental and emotional issues with a mental health professional.