The relationship between MPC and MPS is:

Lenders prefer to lend to firms with high net worth because

A) such firms are usually willing to pay higher interest rates. B) the owners of such firms have more to lose if the firm defaults on a loan. C) the government requires most bank loans to be made to such firms. D) such firms usually are unable to raise funds directly through financial markets.

Because people enjoy the benefits of public goods whether they pay for them or not, people are usually ________ to pay for them. This is known as the free-rider problem, and is intrinsic to ________ goods.

A. unwilling; public B. unwilling; private C. willing; public D. willing; private