Suppose All 18-Year-Olds Are Identical in Every Way Except That

question 19

Multiple Choice

Suppose all 18-year-olds are identical in every way except that some have easy access to credit (i.e., they face a low interest rate when borrowing money) while others have a difficult time accessing credit (i.e., they face a high interest rate when borrowing money) . Which of the following statements is not true?

• A) Those who have easy access to credit have a lower rate of discount than those who do not have easy access to credit.
• B) Those who have easy access to credit will be more likely to go to college than those who do not have easy access to credit.
• C) The present value calculation of college will be higher for those who have easy access to credit than for those who do not have easy access to credit.
• D) Some people who have easy access to credit will not go to college.
• E) No one without easy access to credit will go to college.

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Definitions:

Empty Nest Syndrome

is a feeling of loneliness or depression that parents may experience when their children grow up and leave home for college, work, or to start their own families.

Egalitarian Attitudes

A viewpoint that favors equality for all people, particularly in rights, status, and opportunities.

Housework

Domestic tasks performed within the household, such as cleaning, cooking, and laundry.

Religiosity

The intensity of an individual's religious beliefs or the extent of their religious practices.