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From the Euler Equation, If β=1\beta = 1 , Then ________ and ________

Question 11

Multiple Choice

From the Euler equation, if β=1\beta = 1 , then ________ and ________.


A) ctoday =Xˉ;cfuture =(1+R) Xˉc _ { \text {today } } = \bar { X } ; c _ { \text {future } } = ( 1 + R ) \cdot \bar { X }
B) cfature =(3/4) Xˉ;ctoday =(1/4) (1+R) Xˉc _ { \text {fature } } = ( 3 / 4 ) \cdot \bar { X } ; c _ { \text {today } } = ( 1 / 4 ) ( 1 + R ) \cdot \bar { X }
C) ctoday =(1/2) Xˉ;cfuture =(1/2) (1+R) Xˉc _ { \text {today } } = ( 1 / 2 ) \cdot \bar { X } ; c _ { \text {future } } = ( 1 / 2 ) ( 1 + R ) \cdot \bar { X }
D) ctoday =cfuture ;ytoday =yfutare =Xˉc _ { \text {today } } = c _ { \text {future } } ; y _ { \text {today } } = y _ { \text {futare } } = \bar { X }
E) ctoday =0;cfutare =Xˉc _ { \text {today } } = 0 ; c _ { \text {futare } } = \bar { X }

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