An increase in the interest rate is an increase in the opportunity cost of consuming in the future.
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Q5: An "endowment" is something whose value is
Q6: Suppose you earn annually compounding interest of
Q7: A bond that promises to pay $X
Q8: In choice sets, intertemporal budget constraints illustrate
Q9: Since interest rates for borrowing are usually
Q11: Write down the budget constraint equation as
Q12: Changes in interest rates cause the same
Q13: Suppose a worker gets a weekly check
Q14: Progressive wage taxes cause worker leisure/consumption budgets
Q15: In the worker's leisure/consumption model, the wage
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