Question
Crusoe begins with an endowment A. Point R is the
consumption combination he would choose at real interest rate r and point R´ is the consumption combination he would choose at real interest rate r´. Which of the following statements is true?Solution
Crusoe's wealth has decreased because of the change in the real interest rate. Because Crusoe's endowment and preferences are such that he is a borrower, the increase in the interest rate hurts him. Note the MRS = 1+r at point R.
In the following question, select the related number from the given alternatives.
15 : 195 :: 18 : ?
In the question below, two statements (I) and (II) are given. These statements may be either independent causes or may be effects of independent cause...
Statements:
1. The demand for electric vehicles has surged in the past year.
2. The government has provided tax incentives for purcha...
independent causes or may be effects of independent causes or a common cause. One of these statements may be the effect of the other statement. Read b...
Event (A): The Health Department has made it mandatory for brides and grooms to obtain Age Certificate before marriage from taluk and district hospitals...
Statements:
1. The company’s profits have declined sharply this year.
2. The company faced stiff competition from new market entrants.
In each of the following questions, two statements numbered I and II are given. There may be cause and effect relationship between the two statements. ...
In the question below, two statements (I) and (II) are given. These statements may be either independent causes or may be effects of independent cause...
Statement: The alumni of the institute returned to rescue crumbling building of 112-year-old alma mater.
I. The Building of the institute was b...
Which of the following may be the code for ‘well books’?
