The Theory of Rational Choice Assumes That

question 35

Multiple Choice

The theory of rational choice assumes that:

• A) tastes do not matter.
• B) tastes are given.
• C) tastes influence the supply curve.
• D) tastes do not affect the demand curve.

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Definitions:

Lender

An individual or institution that provides funds to another with the expectation that the funds will be repaid, typically with interest.

Equal Payments

Regular payments that are the same in amount over a period of time, typically referring to loans or mortgages.

Interest Annually

Interest that is calculated and paid once every year on a loan or investment.

Interest Annually

Refers to the interest that is calculated and added to an account once per year.