The marginal rate of substitution of future leisure for future consumption must be equal to
A) the real interest rate.
B) savings in the current period.
C) one.
D) the future real wage.
E) the relative price of current consumption in terms of future consumption.
Correct Answer:
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Q1: The assumption that current-period consumption demand is
Q2: For the economy as a whole, investment
Q4: The firm will hire current labour until
A)
Q5: An increase in the real interest rate
A)
Q6: The slope of the demand for consumption
Q7: An increase in lifetime wealth is likely
Q8: Any increase in the present value of
Q9: Next period's capital is equal to current-period
Q10: An increase in lifetime wealth
A) shifts the
Q11: The assumption that current-period labour supply is
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