The Phenomenon That Some Consumers Pay a Higher Interest Rate

question 20

Multiple Choice

The phenomenon that some consumers pay a higher interest rate when they borrow than the interest rate they receive when they lend is best described as an example of

• A) irrational behavior.
• B) a credit market imperfection.
• C) a vast banking conspiracy.
• D) the burden of public debt.

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Definitions:

Paradigm Shift

A fundamental change in approach or underlying assumptions in a scientific discipline or other field of study.

Positive Psychology

A branch of psychology focused on the study of positive emotions, strengths-based character, and healthy, fulfilling life conditions.

Objectively Measure

The process of quantifying or evaluating an attribute or phenomenon in a way that is not influenced by personal feelings, interpretations, or prejudice.

Parsing Psychology

The process of analyzing and interpreting the mental and emotional components of human behavior typically in terms of language or cognition.