The Euler Equation States

Multiple Choice

The Euler equation states:

A) "The total supply of money is equal to nominal GDP divided by velocity."
B) "The real interest rate is the nominal interest rate minus inflation."
C) "A consumer must be indifferent between consuming today or in the future."
D) "The present value of government's spending must equal the present value of receipts."
E) "Consumption is a function of permanent income."