To ensure a well-defined solution to the consumers' intertemporal choice problems, we must assume that consumers' preferences exhibit the properties that
A) the consumer likes diversity and that more is sometimes preferred to less.
B) they are all identical and that more is always preferred to less.
C) more is sometimes preferred to less and that first-period consumption and second-period consumption are both normal goods.
D) more is sometimes preferred to less and that first-period consumption and second-period consumption are both inferior goods.
E) more is preferred to less and that the consumer prefers diversity.
Correct Answer:
Verified
Q1: A one-period bond is a promise
Q3: According to Friedman, a primary determinant of
Q4: A consumer's budget constraint in the
Q5: A consumer is a lender if
A)the consumer's
Q6: If the consumer is a lender
Q7: The government's current period budget constraint
Q8: A permanent decrease in taxes leads to
A)no
Q9: In the case where current and future
Q10: The property of diminishing marginal rate of
Q11: A permanent increase in income leads to
A)a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents