In the intertemporal budget constraint, wealth is equal to:
A) financial wealth.
B) savings held in stocks and bonds.
C) lifetime income.
D) the overall stock of assets held by future generations.
E) financial plus "human" wealth.

Question

Quizplus · Accepted Answer

The intertemporal budget constraint considers wealth as the sum of financial wealth (such as savings held in stocks and bonds) and "human" wealth, which is the present value of future income streams. This encompasses both tangible financial assets and the potential to earn income over a lifetime.

In the Intertemporal Budget Constraint, Wealth Is Equal To