Assuming no kinks in indifference curves and assuming our usual assumptions about tastes hold, someone who currently neither saves nor borrows will begin to borrow when the interest rate falls.
Answer the following statement true (T) or false (F)
True
Rationale:
You might also like to view...
Revealed preference is:
A. the idea that people's preferences can be determined by observing their choices and behavior. B. the notion that people reveal the utility they get by reporting it on a numerical scale. C. the method that psychologists, anthropologists, and economists use to measure utility. D. All of these are true.
Which of the following is an example of product differentiation based on the location from which a product is sold?
a. An electronic company advertising its new range of slim smartphones b. A cellphone service provider offering free access to a particular website c. A car mechanic opening his new workshop near a busy highway d. An electronic company offering a warranty of 5 years for its air conditioners
In October 2008, Congress passed the ________, under which the Treasury provided funds to banks in exchange for stock
A) Bank Rescue Alliance Treaty (BRAT) B) Mortgage Transfer Agency (MTA) C) Troubled Asset Relief Program (TARP) D) Financial Assurance Association (FAA)
When unanticipated inflation occurs regularly, the degree of risk associated with investments in the economy
A. decreases. B. falls to zero. C. increases. D. remains stable.