Multiple Choice
For a competitive equilibrium in a two-period model,which of the following is true?
A) each consumer picks first- and second-period consumption given the real interest rate
B) there must be an equal number of borrowers and lenders.
C) the present value of government spending must be greater than the present value of taxes.
D) the financial market clears.
E) all deficits are financed by issuing debt.
Correct Answer:
Verified
Correct Answer:
Verified
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