Multiple Choice
For all bonds to be indistinguishable,
A) all consumers must never be expected to default on their debts.
B) the government must guarantee all bonds.
C) all consumers must be identical.
D) they must be traded through financial intermediaries.
E) only government can issue bonds.
Correct Answer:
Verified
Correct Answer:
Verified
Q4: The government's present value budget constraint states
Q5: The endowment point is the consumption bundle
Q6: According to Friedman,a primary determinant of a
Q7: The property of diminishing marginal rate of
Q8: The government's future period budget constraint is:<br>A)
Q10: A consumer is a borrower if<br>A) optimum
Q11: What is consumption smoothing and how is
Q12: A one-period bond is a promise to
Q13: If the consumer is a lender then<br>A)
Q14: The Ricardian equivalence theorem implies that<br>A) government