Multiple Choice
In the two-period model of the economy
A) there is only one real interest rate.
B) borrowing rates of interest are less than lending rates of interest.
C) borrowing rates of interest are equal to lending rates of interest.
D) borrowing rates of interest are greater than lending rates of interest.
E) there is only one nominal interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
Q5: The government's future period budget constraint
Q6: The Ricardian Equivalence Theorem implies that a
Q7: What is consumption smoothing and how is
Q8: An increase in the real interest rate<br>A)increases
Q9: To ensure a well-defined solution to the
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