11、(a) Suppose individuals differ in their ability, but face the same interest rate. Is it possible...

11、(a) Suppose individuals differ in their ability, but face the same interest rate. Is it possible for the more able individuals to choose less schooling?

(b) Suppose individuals have the same ability, but face different interest rates. Is it possible for the individuals who face a lower interest rate to choose less schooling?

Expert Solution

Rahul Sunny answered 2 years ago

(a) Suppose individuals differ in their ability, but face the same interest rate. Is it possible...

(a) Suppose individuals differ in their ability, but face the same interest rate. Is it possible for the more able individuals to choose less schooling? (b) Suppose individuals have the same ability, but face different interest rates. Is it possible for the individuals who face a lower interest rate to choose less schooling? Explain in details

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