Given a decrease in the real interest rate,the income effect will be ________ for lenders and ________ for borrowers.
A) negative; negative
B) ambiguous; positive
C) positive; ambiguous
D) positive; negative

Question

Quizplus · Accepted Answer

The Answer of Given a decrease in the real interest rate,the income effect will be ________ for lenders and ________ for borrowers.
A) negative; negative
B) ambiguous; positive
C) positive; ambiguous
D) positive; negative

Given a Decrease in the Real Interest Rate,the Income Effect