The budget constraint is kinked for all of these reasons

Assignment Help Business Economics
Reference no: EM131380772

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.

Reference no: EM131380772

Questions Cloud

How would you treat activities of criminal in gdp accounting : How would you treat activities of criminals in GDP accounting? What about the activities of the police force? What is the value added in each sector and what is the total output for the economy?
What are the fundaments of sampling : What is the purpose of sampling?What are the fundaments of sampling?Give an example (identifying the characteristics) of one type of probability and nonprobability sampling presented in Ch. 6 of Applied Social Research.How can you avoid bias when s..
How would the shareholder go about appointing a proxy : A shareholder would like to appoint their solicitor as their proxy to vote on the various resolutions to be put to the annual general meeting of GML. How would the shareholder go about appointing a proxy
Is equal exchange try to contravene effect of market forces : Suppose Dickinson discovered that one of Equal Exchange's cooperatives was growing illegal products, selling coffee to competitors, or not paying fair wages to workers. What do you think he should do?
The budget constraint is kinked for all of these reasons : In the two-period model, the budget constraint is kinked for all of these reasons, except. For a consumer not bound by the collateral constraint, an increase in the present value of the collateral leads to.
Does chris have standing to sue why or why not : The state legislature has directed the Department of Tourist Affairs to conduct a study on whether legalizing sports gambling will result in significantly increased tourism and, if so, what the projected tax revenues would be. Does Chris have stan..
Discuss how externalities may prevent market equilibrium : Discuss how externalities may prevent market equilibrium and the various governments policies used to remedy the inefficiencies in markets caused by externalities.
Omega travel competes in the highly competitive market : Omega Travel competes in the highly competitive market for travel. Consumers know that Omega has the best agents in the industry and offers superior service. Nonetheless, Omega earns zero economic profits because numerous competitors have entered the..
Describes treatment options based on theoretical models : You are presenting to a group of high school students on the dangers of substance abuse.Create a 10- to 15-slide Microsoft® PowerPoint® presentation on substance-related disorders that includes the following:Describes treatment options based on theor..

Reviews

Write a Review

Business Economics Questions & Answers

  Find out the mean and standard deviation of total payment

His uncertainty about total sales of the book can be represented by a random variable with a mean of 30,000 and a standard deviation of 8,000. Find out the mean and standard deviation of the total payments he will receive.

  What is your marginal tax rate and net income

Your company generated $3.7 million revenue in 2013. Annual costs/depreciation are as follows: cost of goods sold that year was $800,000; salaries and wages that were paid were $1,000,000; advertising costs were $30,000; depreciation was $50,000; oth..

  What are reliable predictors of economic-financial crisis

The economic and financial crisis from 2008 to 2009, also known as the global financial crisis, was considered to be the worst financial crisis since the Great Depression. What are reliable predictors of economic and financial crisis? Describe some a..

  Why should john and karl live together

Why should John and Karl live together. If they do, will there be dirty dishes in the sink. Explain

  Using flowcharting and performance metrics

Discuss why it is important to evaluate processes within an organization using flowcharting and performance metrics.

  Calculate the firms profit

A perfectly competitive firm sells 50,000 units of knives at a price of $3. The firm's average cost at 50,000 units is $2.75. Calculate the firm's profit. Please verify answer twice before sending back to me the steps. I want to make sure I have the ..

  Compute the arc cross elasticity of demand?

compute the arc cross elasticity of demand?

  Considering getting involved in electronic commerce

Northwest Iron and Steel is considering getting involved in electronic commerce. A modest e-commerce package is available for 20,000$. if the company wants to recover the cost in 2 years, what is the equivalent amount of a new income that must be rea..

  Employment assignments require special compensation

Do you agree or disagree that some international employment assignments require special compensation? Please explain. How does recruiting for international assignments differ from that of domestic assignments? How does the scope of a firm's internati..

  Price searcher-monopoly firm must do what

As a price searcher, a monopoly firm must do what?

  Disposable income over two periods-current-future period

Consider a household seeking to allocate disposable income over two periods: current period and a future period. How does the equilibrium r vary with an exogenous increase in y'? Is this intuitive? you should be able to make an argument as to whether..

  Domestic supply and demand equations

The US market of rice is described by the following domestic supply and demand equations: QdUS = 200 – 2 P , QsUS = -100 + 3 P where QdUS and QsUS represent the quantities demanded and supplied (in millions of tons) and P is the price per ton of rice..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd