Limited commitment means
A) one cannot credibly promise something.
B) one saves only part of what is optimal.
C) only some households are allowed to save.
D) there is rationing on the credit market.
E) only governments can borrow.
Correct Answer:
Verified
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
Q12: Asymmetric information means
A) some market participants have
Q13: When consumers lend at a lower rate
Q14: The default premium increases when there is
Q15: In the two-period model, a bank
A) creates
Q16: If the value of collateral falls for
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