Multiple Choice
The property of diminishing marginal rate of substitution implies that
A) the less current consumption the consumer has, the less future consumption she is willing to give up for one more unit of current consumption.
B) the more current consumption the consumer has, the less future consumption she is willing to give up for one more unit of current consumption.
C) the indifference curves are bowed away from the origin.
D) the indifference curves have a constant slope.
E) the more current consumption the consumer has, the more future consumption she is willing to give up for one more unit of current consumption.
Correct Answer:

Verified
Correct Answer:
Verified
Q11: The Ricardian equivalence theorem implies that<br>A)the timing
Q12: For a borrower, an increase in the
Q13: If the consumer is a lender
Q14: For all bonds to be indistinguishable<br>A)all consumers
Q15: If we represents a two-period consumer's
Q17: For the consumer to be at
Q18: In our two-period model, the government must
Q19: The marginal rate of substitution of current
Q20: The simplest device to analyze dynamic decisions
Q21: The two primary explanations for the excess