Multiple Choice
A one-unit decrease in current income, and a one-unit increase in lifetime wealth
A) both have no effect on the consumer's behaviour.
B) have the same effect on the consumer's current and future consumption.
C) have different effects on the consumer's current and future consumption.
D) will both have the same effect on savings.
E) imply that future consumption goes down.
Correct Answer:
Verified
Correct Answer:
Verified
Q48: A consumer's budget constraint in the current
Q49: If we represents a two-period consumer's lifetime
Q50: The substitution effect of a change in
Q51: The Ricardian Equivalence Theorem implies that a
Q52: For the consumer to be at
Q54: The optimal consumption bundle is where<br>A) c
Q55: If we represents a two-period consumer's
Q56: The endowment point is the consumption bundle
Q57: In the case where current and future
Q58: For all bonds to be indistinguishable,<br>A) all