Assume that consumption when young and consumption when old are both normal goods. The income effect of an increase in the interest rate will result in an increase in saving when young. an increase in saving when old. a decrease in saving when young. a decrease in saving when old.
Assume that consumption when young and consumption when old are both normal goods. The income effect of an increase in the interest rate will result in an increase in saving when young. an increase in saving when old. a decrease in saving when young. a decrease in saving when old.
Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance
Section: Chapter Questions
Problem 1.1P
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Assume that consumption when young and consumption when old are both normal goods. The income effect of an increase in the interest rate will result in
Group of answer choices
an increase in saving when young.
an increase in saving when old.
a decrease in saving when young.
a decrease in saving when old.
Transcribed Image Text:Assume that consumption when young and consumption when old are both normal goods. The
income effect of an increase in the interest rate will result in
an increase in saving when young.
an increase in saving when old.
a decrease in saving when young.
a decrease in saving when old.
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