Multiple Choice
In Irving Fisher's two-period model augmented by a borrowing constraint, an example of a consumer for whom the borrowing constraint might likely be binding would be:
A) a college student.
B) a college student's parent.
C) a college professor.
D) the president of a bank.
Correct Answer:

Verified
Correct Answer:
Verified
Q84: In Irving Fisher's two-period consumption model, if
Q85: According to the permanent-income hypothesis, if consumers
Q86: What variables, in addition to current income,
Q87: A binding borrowing constraint will _ the
Q88: According to Friedman's permanent-income hypothesis, the marginal
Q90: Economic data suggest that when income is
Q91: The life-cycle hypothesis and the permanent-income hypothesis
Q92: Suppose that Congress passes a law to
Q93: Exhibit: Consumption, Income, and Wealth Over
Q94: In John Maynard Keynes's model, the most