The household real budget constraint C + (
B/P) +
K = (
/P) + (w/P) •L + i•((B/P) + K) . shows that in our model:
A) households get income only from labour.
B) households can spend their income on consumption or acquiring more capital and bonds.
C) households can spend their income only on consumption.
D) households view bonds as riskier than capital.
Correct Answer:
Verified
Q35: According to the household nominal budget constraint,
Q36: In the model the nominal interest rate
Q37: The principal of a bond is:
A)the amount
Q38: In the model the nominal interest rate
Q39: Over all household's bonds, B, must total
Q41: In the market clearing model, nominal saving
Q42: To maximize profit a firm should hire
Q43: In the market clearing model, nominal saving
Q44: In the model why does the return
Q45: Real saving is:
A) ![]()
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