Multiple Choice
The optimal consumption bundle is where
A) the marginal rate of substitution in the current period equals the marginal rate of substitution in the future period.
B) c = y - t - s.
C) MRS = 1 = r.
D) c = s.
E) budget constraint.
Correct Answer:
Verified
Correct Answer:
Verified
Q42: The private supply of credit is an
Q43: A consumer is a lender if<br>A)the consumer's
Q44: A permanent decrease in taxes leads to<br>A)no
Q45: Distorting taxes can invalidate Ricardian equivalence because<br>A)the
Q46: Bonds are assumed to trade directly<br>A)through financial
Q48: A one-unit decrease in current income, and
Q49: When different consumers pay different amounts of
Q50: Ricardian equivalence suggests that the government must
Q51: An important reason why Ricardian equivalence may
Q52: For a lender, an increase in the