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Suppose you are a lender. The T-bill interest rate is 1.4%. If you do not lend to a borrower during a round of the experiment, which one of the following would happen in that round?
A. The computer would automatically purchase a T-bill for you, and you would have a loss of $14.
B. The computer would automatically purchase a T-bill for you, and you would have a gain of $1,000.
C. You will end up with neither a loan nor a T-bill, and your gain will be zero.
D. You will end up with neither a loan nor a T-bill, and you will have a loss of $14.
E. The computer would automatically purchase a T-bill for you, and you would have a gain of $14.
Consider an employee who does not receive employer-based health insurance and must divide her $700 per week in after-tax income.
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