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Author Question: An individual may borrow a certain sum of money from any of the three banks in his town. Bank 1 ... (Read 100 times)

2125004343

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An individual may borrow a certain sum of money from any of the three banks in his town.
 
  Bank 1 offers him loans at an annual rate of 5, Bank 2 offers him loans at an annual rate of 3 per year, and Bank 3 offers him a loan at an annual rate of interest of 10. A rational individual will:
  A) borrow from Bank 2.
  B) borrow from Bank 1.
  C) borrow from Bank 3.
  D) be indifferent about borrowing from any of the three banks.

Question 2

Which of the following statements is true?
 
  A) If households expect higher taxes in the future, they will decrease their current savings rate.
  B) The savings rate of households is dependent only on current consumption expenditure.
  C) The savings rate of households is dependent only on consumption expenditure planned for the future.
  D) If households expect higher taxes in the future, they will increase their current savings rate.


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canderson530

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2125004343

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Reply 2 on: Jun 30, 2018
Gracias!


ghepp

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Reply 3 on: Yesterday
Excellent

 

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