A consumer, who is initially a lender, remains a lender even after a decline in interest rates.
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A consumer, who is initially a lender, remains a lender even after a decline in interest rates. Is this consumer better off or worse off after the change in interest rates? If the consumer becomes a borrower after the change is he better off or worse off?
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In order to remain a lender after the change in interest rates the consumer must be choosing a poin...View the full answer
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