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Cfuture Yfuture B IC Ytoday A Ctoday

Cfuture Yfuture B IC Ytoday A Ctoday

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1- A consumer who starts (i.e. has an endowment) at point B, and has preferences shown by IC1, will want to borrow. 

Select one:

True
False
 
2-Assuming a mix of present and future consumption is preferred, ANY consumer who starts (i.e. has an endowment) at point A will gain utility from a rise in interest rates. 
 
Select one:
 
True
False
 
3-A consumer who starts at point B will want to borrow, but as little as possible in order to minimise the cost of interest.
 
Select one:
 
True
False
 
4-If a consumer starts at point A, and then receives extra income in the present, this would appear as an outward shift of the budget constraint. 
Select one:
 
True
False
Cfuture Yfuture B IC Ytoday A Ctoday
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