A collateral constraint captures the idea that
A) there is asymmetric information in credit markets.
B) assets may be of no use.
C) consumers need incentives not to abscond on their debts.
D) Ricardian equivalence always holds.
E) the budget constraint is irrelevant.
Correct Answer:
Verified
Q1: The phenomenon that some consumers pay a
Q2: An interest rate spread is
A) the difference
Q4: In a simple model of credit imperfections,
Q5: If the proportion of bad borrowers increases,
A)
Q6: Collateralizable wealth is
A) wealth in non-tangible assets.
B)
Q7: When there are credit-market imperfections, an increase
Q8: If consumers face higher interest rates when
Q9: If there are fewer bad borrowers in
Q10: The 1990-1992 recession was unlikely to be
Q11: Limited commitment means
A) one cannot credibly promise
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