The substitution effect of a higher real interest rate

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The substitution effect of a higher real interest rate on current consumption refers to a/an {INCREASE, DECREASE} in current consumption that takes place as a result of current consumption becoming more expensive than future consumption.

Reference no: EM131002980

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The substitution effect of a higher real interest rate : The substitution effect of a higher real interest rate on current consumption refers to a/an {INCREASE, DECREASE} in current consumption that takes place as a result of current consumption becoming more expensive than future consumption.

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