Suppose two people with the same level of income and wealth have different discount rates. Joe has a very high discount rate and Jim has a very low discount rate. Which one of the following is TRUE?
A) Joe is more likely to borrow than Jim.
B) Joe is less likely to borrow than Jim.
C) Joe and Jim will borrow the same amount.
D) Neither Joe nor Jim would be borrowers.
A
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For a perfectly competitive firm, no matter how much the firm produces, price always equals
A) marginal product. B) average total cost. C) minimum average total cost. D) marginal revenue.
Suppose the supply of textbooks is upward sloping and shifts leftward due to higher ink and paper costs. Which of the following events would leave the equilibrium price of textbooks at the same level observed before the supply shift?
A) Demand is perfectly elastic (horizontal). B) Demand is downward sloping and shifts leftward. C) all of the above D) none of the above
The manager of View Your World, a high-end window manufacturer, notices that the cost to purchase glass for their windows in the spot market has increased. As a result of the change, which of the following is true?
A) The manager has more of an incentive to integrate forward. B) The manager has less of an incentive to integrate forward. C) The manager has less of an incentive to integrate backward. D) The manager has more of an incentive to integrate backward.
Which of the following would not be studied by macroeconomists?
A. The effects of tax cuts on consumer spending B. Factors affecting average wages in the U.S. economy C. Inflation in developing countries D. The worldwide operations of General Motors