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    Microeconomics Theory with Applications
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    Exam 5: Intertemporal Decision Making and Capital Values
  5. Question
    In Equilibrium, the Marginal Rate of Time Preference Is Equal
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In Equilibrium, the Marginal Rate of Time Preference Is Equal

Question 5

Question 5

Multiple Choice

In equilibrium, the marginal rate of time preference is equal to:


A) 1/(1 + i) .
B) 1/i.
C) 1 + i.
D) i.

Correct Answer:

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