The intertemporal substitution effect of a change in the price level results from a
A. change in the price of current goods relative to future goods.
B. change in the purchasing power of wealth.
C. change in the price of foreign goods relative to domestic goods.
D. Both answers B and C are correct.
Answer:A
The intertemporal substitution effect of a change in the price level results from a
A. change in the price of current goods relative to future goods. B. change in the purchasing power of wealth. C. change in the price of foreign goods relative to domestic goods. D. Both answers B and C are correct.