For consumers with a binding borrowing constraint,a decrease in the real interest rate ________.
A)decreases consumption now,and in the future
B)increases consumption now,and in the future
C)decreases consumption now,and increases future consumption
D)has no impact on consumption

Question

Quizplus · Accepted Answer

The Answer of For consumers with a binding borrowing constraint,a decrease in the real interest rate ________.
A)decreases consumption now,and in the future
B)increases consumption now,and in the future
C)decreases consumption now,and increases future consumption
D)has no impact on consumption

For Consumers with a Binding Borrowing Constraint,a Decrease in the Real