If an increase in the interest rate lowers savings thena, Ask an Expert

Economics

If an increase in the interest rate lowers savings, then

A. the substitution effect is greater than the income effect.

B. the income effect is greater than the substitution effect.

C. the income effect and the substitution effect move in the same direction.

D. we are unable to determine the sizes of the income and substitution effects without more information.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91235433

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