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1. In the two-period model, the budget constraint is kinked for all of these reasons, except
A) the real interest rate is greater than zero.
B) there are costs to banks from lending and borrowing.
C) there is asymmetric information in the credit market.
D) there is limited commitment in the credit market.
2. For a consumer not bound by the collateral constraint, an increase in the present value of the collateral leads to
A) nothing.
B) an increase in current consumption and a decrease in future consumption.
C) an increase in current consumption and no change in future consumption.
D) an increase in both current and future consumption.
q1. when the value of a nations imports exceeds the value of that nations exports the nation is said to have what?q2.
Why is economics considered a social science? What role does economics play in your personal and professional lives?
The roles of government include all of the following tasks except
Suppose you decide to elicit high CEO effort when and if bad luck occurs by paying bonus for $500 million outcomes. Illustrate what criticism can you see with this incentive contract plan.
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The following equation represents the daily market demand for crude oil. Q = 10, 000,000 - 500,000 P Suppose there are four oil producers in the crude oil market, A, B , C and D. The marginal cost of A is $10. The marginal cost of B is $12. The margi..
Converse the latest equilibrium price also quantity to result from these changes.
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Milk is a commodity is it a necessity or a luxury product. Evalute the availability of its substitutes for the product. Explain how the necessity of a good and the availability of substitutes impact the elsticity of the product.
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