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.
b
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A probability distribution with a smaller percentage of its observations beyond a certain distance from the mean will have a higher variance
Indicate whether the statement is true or false
Keynes’ law states that:
a. demand creates its own supply. b. when there is supply there will be demand. c. you can only supply what is demanded. d. people create both supply and demand.
Use the graph to the right to help determine which of the following statements regarding the labor force participation rates of adult men and women since 1950 is false.
What will be an ideal response?
An increase in the stock of capital will cause the
A. production possibility frontier to shift outward. B. economy to move closer to its production possibility frontier. C. production possibility frontier to shift inward. D. economy to move down the production possibility frontier.