Suppose that consumption when young and consumption when, Microeconomics

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Suppose that consumption when young and consumption when

Suppose that consumption when young and consumption when old are both normal goods. The income effect of an increase in the interest rate will result in:

1. An increase in saving when old.

2. A decrease in saving when old.

3. A decrease in saving when young.

4. An increase in saving when young.

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Microeconomics: Suppose that consumption when young and consumption when

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