The consumer's lifetime budget constraint states that
A) the present value of lifetime consumption must be equal to the present value of lifetime gross income.
B) the present value of lifetime consumption must be equal to the present value of lifetime disposable income.
C) the present value of lifetime consumption plus the present value of lifetime taxes to be paid must be equal to the present value of lifetime income.
D) the present value of lifetime taxes to be paid by the consumer must be equal to the present value of government spending.
Correct Answer:
Verified
Q10: If we represents a two-period consumer's lifetime
Q11: We use a two-period model because
A) the
Q12: If we represents a two-period consumer's lifetime
Q13: The simplest device to analyze dynamic decisions
Q14: The desire to smooth consumption is reflected
Q16: In the basic two-period model,
A) credit markets
Q17: Lifetime wealth is
A) the quantity of assets
Q18: Why don't consumers work in the two-period
Q19: Consumption smoothing refers to
A) the tendency of
Q20: The endowment point is the consumption bundle
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