For a consumer bound by the collateral constraint, a reduction in the price of the collateral leads to
A) nothing.
B) an increase in current consumption and a decrease in future consumption.
C) a decrease in current consumption and no change in future consumption.
D) a decrease in current and future consumption.
C
Economics
You might also like to view...
Refer to Table 10-2. Using the table above, what is the approximate average annual growth rate from 2013 to 2016?
A) -1% B) 1% C) 2% D) 4%
Economics
The tradeoff between the inflation rate and unemployment rate is represented by the:
a. consumption function. b. misery index. c. Phillips curve. d. Keynes curve.
Economics