If, for John's current intertemporal consumption pattern (satisfying his intertemporal budget constraint) , his marginal rate of intertemporal substitution is 1 and the real rate of interest is positive, then...
A) the interest rate will fall to zero.
B) john could increase his lifetime utility by consuming more today.
C) john could increase his lifetime utility by consuming less today.
D) john is necessarily a borrower.
Correct Answer:
Verified
Q2: There are strong theoretical reasons to expect
Q3: The accelerator principle states:
A)if an increase in
Q4: Which best describes consumer surplus?
A)the price consumers
Q5: Which of the following statements is NOT
Q6: Community surplus equals:
A)producer surplus minus consumer surplus
B)profits
Q7: Monopoly power in a market is likely
Q8: A positive consumption externality occurs when:
A)the social
Q9: A merit good:
A)is a public good
B)involves a
Q10: A demerit good:
A)is a public good
B)involves a
Q11: A public good will probably:
A)be expensive in
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