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If an increase in the interest rate lowers savings


If an increase in the interest rate lowers savings, then

A. the substitution effect is greater than the income effect.

B. the income effect is greater than the substitution effect.

C. the income effect and the substitution effect move in the same direction.

D. we are unable to determine the sizes of the income and substitution effects without more information.

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Microeconomics: If an increase in the interest rate lowers savings
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