Author Question: If a consumer borrows at an interest rate greater than the interest rate at which he or she can ... (Read 161 times)

RYAN BANYAN · **on:** Jun 30, 2018

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.

Question 2

An indifference curve

A) connects a set of consumption bundles among which the consumer is indifferent.
B) is only useful in analyzing apathetic consumers.
C) connects a set of consumers who each have the same preferences.
D) is only useful in microeconomics.