If a Consumer Borrows at an Interest Rate Greater Than

question 21

Multiple Choice

If a consumer borrows at an interest rate greater than the interest rate at which he or she can lend,then

• A) banks cannot make a profit.
• B) the budget constraint has a kink at the endowment point.
• C) the consumer must be a lender.
• D) this makes no difference for consumer behavior.

---

Definitions:

Sagittal Plane

A vertical plane that divides the body into right and left parts, commonly used in anatomical and medical contexts.

Sagittal Plane

An anatomical plane that divides the body into right and left parts.

Heart

A muscular organ in most animals, which pumps blood through the blood vessels of the circulatory system.

Ribs

Long, curved bones which form the rib cage, providing protection to the thoracic organs and supporting the upper body.