The Phenomenon That Some Consumers Pay a Higher Interest Rate

question 64

Multiple Choice

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

• A) irrational behaviour.
• B) a credit market imperfection.
• C) a vast banking conspiracy.
• D) the burden of public debt.
• E) competitive disequilibrium.

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Definitions:

Categorical Syllogism

A form of deductive reasoning consisting of three propositions that are categorical in nature, presenting a relationship between a subject and a predicate.

Minor Term

in syllogistic logic, the term that appears in both the conclusion and one premise of a syllogism, but not the major premise.

Major Premise

The first premise in a syllogism, typically a general statement or proposition that asserts a universal truth or principle.

Categorical Syllogisms

A form of deductive reasoning consisting of a major premise, a minor premise, and a conclusion, each statement being categorical.