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In the Special Case Where β=1\beta = 1 , and with Logarithmic Utility, the Euler Equation Is Given

Question 5

Multiple Choice

In the special case where β=1\beta = 1 , and with logarithmic utility, the Euler equation is given by:


A) β=(1+R) =1\beta = ( 1 + R ) = 1
B) ctoday =(1+R) cfuture c _ { \text {today } } = ( 1 + R ) c _ { \text {future } }
C) ctoday =(1+R) cfuture =βc _ { \text {today } } = ( 1 + R ) c _ { \text {future } } = \beta
D) yfuture =ftoday =ytodey y _ { \text {future } } = f _ { \text {today } } = y _ { \text {todey } }
E) (1/ctodey ) =(1+R) (1/cfuture ) \left( 1 / c _ { \text {todey } } \right) = ( 1 + R ) \left( 1 / c _ { \text {future } } \right)

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