Multiple Choice
A key channel for interest rate effects on real activity will be through
A) temporary income.
B) permanent income.
C) aggregate consumption.
D) aggregate investment.
E) consumption and savings.
Correct Answer:

Verified
Correct Answer:
Verified
Q13: Consumption-savings decisions involve intertemporal choice as this
Q14: The consumer's lifetime budget constraint states that<br>A)
Q15: For a borrower, an increase in the
Q16: Ricardian equivalence suggests that the government must
Q17: If we represents a two-period consumer's lifetime
Q19: An increase in the real interest rate
Q20: Supposing Ricardian equivalence holds, an increase in
Q21: When different consumers pay different amounts of
Q22: If government spending is held constant and
Q23: For a competitive equilibrium in a two-period