If a consumer borrows at an interest rate greater than the interest rate at which he or
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Question:
If a consumer borrows at an interest rate greater than the interest rate at which he or she can lend, then
| banks cannot make a profit. | ||
| the budget constraint has a kink at the endowment point. | ||
| the consumer must be a lender. | ||
| this makes no difference for consumer behavior. |
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