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    Exam 9: A Two-Period Model: The Consumption–Savings Decision and Credit Markets
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    The Optimal Consumption Bundle Is Where
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The Optimal Consumption Bundle Is Where

Question 56

Question 56

Multiple Choice

The optimal consumption bundle is where


A) c = s.
B) c = y - t - s.
C) the marginal rate of substitution in the current period equals the marginal rate of substitution in the future period.
D) budget constraint.
E) MRS = 1 = r.

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