Multiple Choice
The substitution effect of a change in the real interest rate is an example of
A) an intratemporal substitution effect.
B) an intertemporal substitution effect.
C) an atemporal substitution effect.
D) a temporary substitution effect.
Correct Answer:
Verified
Correct Answer:
Verified
Q29: We limit ourselves to two periods in
Q30: For the consumer to be at an
Q31: The Ricardian equivalence theorem implies that<br>A) government
Q32: The idea that a permanent increase in
Q33: An important reason why Ricardian equivalence may
Q35: In a two-period model,government spending is financed
Q36: At the endowment point,we have the property
Q37: The desire to smooth consumption is reflected
Q38: The consumer's lifetime budget constraint states that<br>A)
Q39: If current income increases as much as