When both consumptions are considered "normal goods," what could result from the income effect of an increase in the interest rate
A)an increase in saving when young
B)an increase in saving when old
C)a decrease in saving when young, and a decrease in saving when old
D)an increase in saving when young, and an increase in saving when old

Question

Quizplus · Accepted Answer

The Answer of When both consumptions are considered "normal goods," what could result from the income effect of an increase in the interest rate
A)an increase in saving when young
B)an increase in saving when old
C)a decrease in saving when young, and a decrease in saving when old
D)an increase in saving when young, and an increase in saving when old

When Both Consumptions Are Considered "Normal Goods," What Could Result