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The Friedman Rule Is Optimal Because Which of the Following MRT1,c1+R \frac{MRT_{1, c}}{1+R}

Question 17

Multiple Choice

The Friedman rule is optimal because which of the following relationships holds in equilibrium?


A) MRS1,c = MRT1,c
B) MRS1,c = MRT1,c1+R \frac{MRT_{1, c}}{1+R}
C) MRT1,c = x
D) MRS1,c = MRT1,c (1 + R)
E) MRS1,c > MRT1,c1+R \frac{M R T_{1, c}}{1+R}

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