Question: 2 a. (5 point) Predict what would happen to aggregate (economy wide) consumption and savings if the real interest rate rises. Explain why an individual's

2 a. (5 point) Predict what would happen to aggregate (economy wide) consumption and savings if the real interest rate rises. Explain why an individual's and aggregate consumption might respond differently, if at all, to a change in the real interest rate. b. (5 points) How is the real interest rate (r) related to the nominal interest rate

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