What happens to consumption today and in the future

Reference no: EM132139577

Question: Analyze the effect of an interest rate decrease on a consumer who is currently a lender. Specifically, answer the following questions. A graph would be useful in your analysis.

a. What happens to consumption today and in the future?

b. Is the consumer better or worse off?

c. What happens to savings?

d. Will the consumer remain a lender?

Reference no: EM132139577

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