The phenomenon that some consumers pay a higher interest rate when they borrow than the interest rate they receive when they lend is best described as an example of

Question

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This phenomenon is best described as a credit market imperfection, where lenders have more bargaining power than borrowers and can charge higher interest rates. It is not necessarily irrational behavior, a conspiracy, or solely due to public debt or predatory lending practices.

The Phenomenon That Some Consumers Pay a Higher Interest Rate