Multiple Choice
In Figure 16.2, point c is equal to the ________ and implies ________.
A) utility of the average of and
; consumption smoothing
B) utility associated with consuming ; risk neutrality
C) utility of consumption; Ricardian equivalence
D) average utility of and
; a borrowing constraint
E) utility of the average of and
; a low discount factor
Correct Answer:

Verified
Correct Answer:
Verified
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