The Private Supply of Credit Is an Increasing Function of the Real

question 42

Multiple Choice

The private supply of credit is an increasing function of the real interest rate if

• A)the income effects outweighs the substitution effects when added across all consumers.
• B)the income effect outweighs the substitution effects for borrowers.
• C)the substitution effects outweighs the income effects when added across all consumers.
• D)the substitution and income effects cancel each other.
• E)consumers are rational.

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Definitions:

Sensitivity

The quality of being responsive or susceptible to external conditions or stimuli.

Gender Awareness

The understanding and recognition of gender roles, identities, and expressions, including the societal norms and expectations associated with them.

Concrete External Traits

Concrete external traits refer to observable and measurable physical characteristics or behaviors of individuals.

Self-concepts

Refers to individuals' awareness and understanding of themselves, including beliefs about their own abilities, attributes, and the attitudes towards themselves.