If a consumer borrows at an interest rate greater than the interest rate at which he or she can lend, then
A) banks cannot make a profit.
B) the budget constraint has a kink at the endowment point.
C) the consumer must be a lender.
D) this makes no difference for consumer behavior.
B
You might also like to view...
Tsintah weaves traditional Navaho rugs. She weaves and sells 50 rugs. Her average cost of production per rug is $50 . She sells each rug for a price of $65 . Tsintah's total revenues are
a. $750. b. $2,500. c. $3,250. d. $5,750.
In the above table, C is consumption expenditure, I is investment, G is government expenditure, and X - M is net exports. All entries are in dollars. The slope of the aggregate expenditure function is
A) -0.10. B) 0.10. C) 0.60. D) 0.70.
The three pillars of productivity growth does not include an
A. increase in the rate at which the economy builds up its stock of capital. B. increase in population. C. increase in the rate at which technology improves. D. increase in the rate at which workforce quality improves.
Use of money as a medium of exchange
A. represents the most important service that money renders. B. permits only very limited production because of the high transaction costs of exchange. C. means that transactions only occur if there is a double coincidence of wants. D. permits only very limited specialization of labor.