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Business, 09.04.2020 16:27 kangasc6124

An individual is considering consumption in two periods. He has decided to borrow $1,000 in period 1, given his endowment and the interest rate. Other things remaining the same, if the interest rate increases, he will: A borrow more than $1,000. B. borrow more or less depending upon whether or not the substitution effect of the change is greater than the income effect C. borrow less than $1,000. D. continue to borrow $1,000.

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An individual is considering consumption in two periods. He has decided to borrow $1,000 in period 1...
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