Multiple Choice
Limited commitment means
A) one cannot credibly promise something.
B) one saves only part of what is optimal.
C) only some households are allowed to save.
D) there is rationing on the credit market.
E) only governments can borrow.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: Why do consumers benefit from pay-as-you-go social
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
Q8: A collateral constraint captures the idea that<br>A)
Q9: If there are fewer bad borrowers in
Q10: The phenomenon that some consumers pay a
Q11: In a simple model of credit imperfections,