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 below are given some statements followed by some conclusions based on those statements. Taking the given statements to be true...
Statements: D ≥ G > N < Q > T = W
Conclusions:
I. D < N
II. W = N
Statements: P ≥ Q, R > S, R ≥ Q, T = P < U
Conclusion:
I. R > P
II. U > Q
Statements: G ≤ E < M; H ≥ G; U < M < A
Conclusions:
I. G < A
II. U < E
III. M > H
In the question, assuming the given statements to be true, find which of the conclusion (s) among given two conclusions is /are definitely true, and th...
Statements:
Some Dollars are Rupees
All Rupees are Euros
Only Pesos are Rubles
No Ruble is a Euro
Concl...
Read the given statement and conclusions carefully. Assuming that the information given in the statement is true, decide which of the given conclusions ...
Read the given statements and conclusions carefully. Assuming that the information given in the statements is true, even if it appears to be at varianc...
In the questions given below there are three statements followed by two conclusions I and II. You have to take the three given statements to be true ev...
Below are given statements followed by some conclusions. You have to take the given statements to be true even if they seem to be at variance with the c...
