Multiple Choice
For a lender,an increase in the real interest rate
A) definitely reduces current consumption and increases future consumption.
B) reduces current consumption and has an uncertain effect on future consumption.
C) has an uncertain effect on current consumption and increases future consumption.
D) has an uncertain effect on both current and future consumption.
Correct Answer:
Verified
Correct Answer:
Verified
Q5: Which condition would generate a violation of
Q6: A permanent decrease in taxes leads to<br>A)
Q7: Which of the following is not a
Q8: For a borrower in a (c,c')graph,the optimal
Q9: If government spending does not change,an increase
Q11: An increase in first-period income results in<br>A)
Q12: The Ricardian Equivalence says<br>A) whatever the level
Q13: An increase in the real interest rate<br>A)
Q14: A temporary increase in income today leads
Q15: The Ricardian Equivalence holds only if<br>A) the