In the two period consumer model, the net effects from an increase in the interest rate for a net saver is that current consumption future and savings
a. increases, ambiguous, decreases
b. ambiguous, decreases, ambiguous
c. ambiguous, increases, ambiguous
d. increases, ambiguous, increases

Many potential buyers value high-quality used cars at the full-information market price of € p1 and lemons at € p2. a limited number of potential sellers value high-quality cars at € v1 ≤ p1 and lemons at € v2 ≤ p2. everyone is risk neutral. the share of lemons among all the used cars that might be potentially sold is € θ . suppose that the buyers incur a transaction cost of $200 to purchase a car. this transaction cost is the value of their time to find a car. what is the equilibrium? is it possible that no cars are sold