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Determining the consumption and saving schedules

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Other things being constant, what will be the effect of each of the following on consumption and saving schedules? Illustrate and explain each cases separately using both the consumption and saving schedule.

  • Credit card companies increase the interest-free periods on their cards.
  • Concern grows over overall rising prices.
  • A weakening of the housing market lowers home values.
  • The real interest rates have fallen.
  • The government executed its plan for tax cuts.

Reference no: EM132506679

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