According to the household nominal budget constraint, PC+
B+P•
K =
+ wL + i(B + PK) , households can use their income to:
A) purchase consumption goods.
B) acquire more bonds.
C) purchase capital goods.
D) all of the above.
Correct Answer:
Verified
Q16: Bond holdings and interest income are zero
Q17: In the model of this chapter the
Q18: The market clearing approach assumes that:
A)people are
Q19: If the nominal wage rate is £10
Q20: One unit of money in the model
Q22: In the market clearing model, for the
Q23: The maturity of a bond is:
A)the amount
Q24: According to the household nominal budget constraint,
Q25: Interest income is:
A)positive for net bond holders.
B)zero
Q26: Individual household nominal income includes:
A)nominal interest income,
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