stevem8728
New member
- May 7, 2010
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Suppose households decide to reduce consumption. This reduction in consumption will cause which of the following to occur?
1. the natural real interest rate to fall
2. ambiguous effects on the natural real interest rate
3. the natural real interest rate to rise
4. no effect on the natural real interest rate
Thanks for your help, this has me baffled as it is not clearly explained in the text.
1. the natural real interest rate to fall
2. ambiguous effects on the natural real interest rate
3. the natural real interest rate to rise
4. no effect on the natural real interest rate
Thanks for your help, this has me baffled as it is not clearly explained in the text.