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A rise in the real interest rate r on period zero consumption C0 Select one: a.creates income effects that increase C0, substitution effects that reduce
A rise in the real interest rate r on period zero consumption C0
Select one:
a.creates income effects that increase C0, substitution effects that reduce C0.
b.creates income and substitution effects that increase C0.
c.creates income and substitution effects that reduce C0.
d.creates income effects that reduce C0, substitution effects that increase C0.
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