Indifference Curves That Cross Would Suggest That

question 393

Multiple Choice

Indifference curves that cross would suggest that

• A)the consumer does not prefer more to less.
• B)the consumer is likely to prefer a redistribution of income from rich to poor.
• C)different individuals have different preferences for the same goods.
• D)the marginal rate of substitution is the same for both indifference curves.

---

Definitions:

Loanable Funds

The money available for borrowing. The market for loanable funds is where borrowers and lenders interact, determining the market interest rate.

Interest Rate

The percentage charged on borrowed money, paid by the borrower to the lender, or earned through deposit or investment, typically expressed on an annual basis.

Loanable Funds

The supply of capital available for borrowing, influenced by interest rates and financial markets, which facilitates investments and purchases.

National Saving

The total amount saved by a country's economy, calculated as the sum of private and public savings, often representing the difference between national income and consumption.