A Most Important Property Resulting from the Existence of a Perfect

Multiple Choice

A most important property resulting from the existence of a perfect loan market is that:

A) It separates the current consumption decision from the current income position by opening the possibility to save and dissave.
B) It frees the investment from the saving decision.
C) a and b only.
D) Borrowing and lending rates are equal.
E) All of the above.