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  3. Study Set
    Macroeconomics Study Set 2
  4. Exam
    Exam 9: A Two-Period Model: The Consumption-Savings Decision and Credit Markets
  5. Question
    If We Represents a Two-Period Consumer's Lifetime Wealth and R
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If We Represents a Two-Period Consumer's Lifetime Wealth and R

Question 3

Question 3

Multiple Choice

If we represents a two-period consumer's lifetime wealth and r denotes the real rate of interest,the horizontal (current consumption) intercept of the consumer's budget line is equal to


A) we.
B) (1 + r) we.
C) If we represents a two-period consumer's lifetime wealth and r denotes the real rate of interest,the horizontal (current consumption) intercept of the consumer's budget line is equal to A)  we. B)  (1 + r) we. C)    D)
D) If we represents a two-period consumer's lifetime wealth and r denotes the real rate of interest,the horizontal (current consumption) intercept of the consumer's budget line is equal to A)  we. B)  (1 + r) we. C)    D)

Correct Answer:

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