Multiple Choice
A collateral constraint captures the idea that
A) there is asymmetric information in credit markets.
B) assets may be of no use.
C) consumers need incentives not to abscond on their debts.
D) Ricardian equivalence always holds.
E) the budget constraint is irrelevant.
Correct Answer:
Verified
Correct Answer:
Verified
Q3: Consumer choice theory predicts that, with identical
Q4: Collateralizable wealth is<br>A) wealth in non-tangible assets.<br>B)
Q5: If the value of collateral falls for
Q6: If the proportion of bad borrowers increases,<br>A)
Q7: In a pay-as-you-go system,<br>A) the young transfer
Q9: If there are fewer bad borrowers in
Q10: The phenomenon that some consumers pay a
Q11: In a simple model of credit imperfections,
Q12: Social security is most likely to present
Q13: In the two-period model, the nature of