What are the effects of an increase in the real interest rate on consumption in each period,

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What are the effects of an increase in the real interest rate on consumption in each period, and on savings? How does this depend on income and substitution effects and whether the consumer is a borrower or lender?

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Macroeconomics

ISBN: 978-0134472119

6th Edition

Authors: Stephen D. Williamson

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Question Posted: Feb 21, 2020 08:03 AM

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What are the effects of an increase in the real interest rate on consumption in each period,

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An increase in the real interest rate has two effects on d...View the full answer

Macroeconomics

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