Describe the income effects of an increase in interest rate


Problem

Describe the income and substitution effects of an increase in the interest rate for a borrower. What does this imply for the effect of eliminating tax deductibility of interest payments?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Describe the income effects of an increase in interest rate
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