A Collateral Constraint Captures the Idea That

question 8

Multiple Choice

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.

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Definitions:

Human Resources

The department within an organization that focuses on recruitment, management, and providing direction for people who work in the organization; also refers to the employees themselves.

Gender Stereotypes

Preconceived notions about the roles and behaviors expected from individuals based on their gender.

Age Stereotypes

Preconceived notions or beliefs about individuals based solely on their age, often leading to discrimination.

Human Resource Decisions

Decisions made within an organization regarding the recruitment, management, and development of employees to improve efficiency and effectiveness.