An increase in the interest rate today leading to a decrease in consumption today violates the law of demand.

Name: An increase in the interest rate today leading to a decrease in consumption today violates the law of demand.
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Question

An increase in the interest rate today leading to a decrease in consumption today violates the law of demand.​

Quizplus · Accepted Answer

The law of demand primarily relates to the quantity demanded of a good or service and its price, not to the relationship between interest rates and consumption, which involves different economic principles such as the income and substitution effects.

An Increase in the Interest Rate Today Leading to a Decrease