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Determinants of Consumption and Saving
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Determinants of Consumption and Saving
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15. Income and Consumption / Determinants of Consumption and Saving / Problem 7
Problem 7
What is the likely impact of increased borrowing on current and future consumption?
A
Current consumption decreases, but future consumption increases.
B
Both current and future consumption increase.
C
Current consumption increases, but future consumption decreases due to interest costs.
D
Both current and future consumption decrease.
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