Solved

Consumption Smoothing Is a Logical Consequence of ________

Question 57

Multiple Choice

Consumption smoothing is a logical consequence of ________.


A) basing decision-making on real rather than nominal interest rates
B) the convexity of indifference curves and the ability to borrow and lend
C) the negative slope fo the intertemporal budget constraint
D) rational expectations

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q52: Current estimates of the marginal propensity to

Q53: Disposable income represents _.<br>A)the income received by

Q54: Intertemporal choice theory is more consistent with

Q55: Assuming no bequests,with a real rate of

Q56: Autonomous consumption is 700 and the marginal

Q58: Indifference curves tend to be convex because

Q59: Consumers who do not consistently discount the

Q60: Discounting involves dividing next-period income by _.<br>A)one

Q61: A theory of saving is necessarily a

Q62: _ will increase current consumption,saving,and future consumption.<br>A)an