If an Individual Has No Access to Credit Markets

question 79

Multiple Choice

If an individual has no access to credit markets:

• A) his or her marginal propensity to consume is one.
• B) he or she saves much less.
• C) he or she can consumption smooth.
• D) his or her marginal propensity to consume is equal to 1/T if he or she lives T periods.
• E) his or her future consumption is equal to zero.

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Definitions:

Secondary

Pertains to the second level or stage, often referring to education or sources that build upon primary information.

Group's Ecology

The study of the relationships and interactions between a group and its physical and social environments.

Workspaces

Workspaces refer to areas or environments where people perform their jobs; these can range from office settings to digital platforms.

Locations

Specific places or sites where something exists or occurs, or can be found.