When a lender refuses to make a loan, although borrowers are willing to pay the stated interest rate or even a higher rate, the bank is said to engage in
A) coercive bargaining.
B) strategic holding out.
C) credit rationing.
D) collusive behavior.
C
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Refer to the scenario above. In equilibrium, ________
A) Mathew will choose good and Peter will choose bad B) Peter will choose good and Mathew will choose bad C) both Mathew and Peter will choose bad D) both Mathew and Peter will choose good
Consider the two graphs above. Suppose that financial liberalization enables more businesses to access credit markets. This would ________ the desired level of the capital stock, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A
Refer to Figure 8.3. The marginal cost of the ninth basketball is A) less than $2. B) $2. C) $3. D) greater than $3.
Refer to the graphs shown. The discovery of a new supply of resources used only in the production of guns can be shown by which shift?
A. From X to Z to X to Y in diagram b B. From A to B to C to D in diagram a C. From X to Y to X to Z in diagram b D. From C to D to A to B in diagram a