If current and future consumption are both normal goods, a decrease in the interest rate will necessarily A. cause savers to save more. B. cause borrowers to borrow less. C. reduce everyone’s current consumption. D. make everyone worse off. E. None of the above.

If current and future consumption are both normal goods, a decrease in the interest rate will necessarily A. cause savers to save more. B. cause borrowers to borrow less. C. reduce everyone’s current consumption. D. make everyone worse off. E. None of the above.

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter11: Fiscal Policy: The Keynesian View And Historical Development Of Macroeconomics

Section: Chapter Questions

Problem 11CQ

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