Question: How does an increase in the real interest rate affect consumption if a person is a net borrower? Explain your answer using the income and

How does an increase in the real interest rate affect consumption if a person is a net borrower? Explain your answer using the income and substitution effect of a change in the real interest rate.

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How does an increase in the real interest rate affect consumption if a person is a net borrower? Explain your answer using the income and substitution effect of a change in the real interest rate.

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