Which of the following statements is true?
A) An individual's future spending decreases when he lends money.
B) An individual's future spending increases when he borrows money.
C) An agent borrows to move his spending from the future to the present.
D) An agent borrows to move his spending from the present to the future.
C
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When cash is deposited in a checkable-deposit account at a bank, there is a(n)
A. increase in the bank's liabilities. B. increase in the money supply M1. C. decrease in the money supply M1. D. increase in the bank's net worth.
An increase in land rents
A. will bring some previously zero-rent land into productive use. B. will lead to land to be used less intensively as its marginal revenue product has decreased. C. will lead to an increase in the marginal revenue product of all inputs used in production on the land. D. will lead to an increase in the marginal revenue product of all inputs used in production except for the land.
The tendency of people to overestimate the value of their possessions when, say, considering such value for insurance purposes is known in prospect theory as the:
A. Anchoring effect B. Endowment effect C. Status quo bias D. Confirmation bias
The fed's ability to influence consumption and investment spending through its control of the real interest rate is strongest in the _____ run
Fill in the blank(s) with the appropriate word.