Multiple Choice
If an individual has no access to credit markets:
A) his or her marginal propensity to consume is one.
B) he or she saves much less.
C) he or she can consumption smooth.
D) his or her marginal propensity to consume is equal to 1/T if he or she lives T periods.
E) his or her future consumption is equal to zero.
Correct Answer:
Verified
Correct Answer:
Verified
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