Rick has net assets of $50,000. How will an increase in the interest rate affect Rick's consumption? How will your answer change if Rick's fortunes change and his net assets fall to -$10,000?

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The Answer of Rick has net assets of $50,000. How will an increase in the interest rate affect Rick's consumption? How will your answer change if Rick's fortunes change and his net assets fall to -$10,000?

Rick Has Net Assets of $50,000