Multiple Choice
If, for John's current intertemporal consumption pattern (satisfying his intertemporal budget constraint) , his marginal rate of intertemporal substitution is 1 and the real rate of interest is positive, then...
A) the interest rate will fall to zero.
B) john could increase his lifetime utility by consuming more today.
C) john could increase his lifetime utility by consuming less today.
D) john is necessarily a borrower.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: There are strong theoretical reasons to expect
Q3: A positive consumption externality occurs when:<br>A)the social
Q4: A situation where people who have taken
Q5: Which best describes consumer surplus?<br>A)the price consumers
Q6: Monopoly power in a market is likely
Q8: Community surplus equals:<br>A)producer surplus minus consumer surplus<br>B)profits
Q9: An insurance company can protect itself from
Q10: A public good will probably:<br>A)be expensive in
Q11: A demerit good:<br>A)is a public good<br>B)involves a
Q12: The accelerator principle states:<br>A)if an increase in