If the Euler equation did not hold,then:
A)the real interest rate would be zero.
B)a consumer would not spend all her lifetime wealth.
C)a consumer could move consumption from the future to the present and increase lifetime utility.
D)a consumer could move consumption from the present to the future and increase lifetime utility.
E)either c or d

Question

Quizplus · Accepted Answer

If the Euler equation did not hold, it would imply that the consumer could rearrange consumption over time to increase lifetime utility, either by moving consumption from the future to the present or vice versa.

If the Euler Equation Did Not Hold,then