If an individual has no access to credit markets:
A) his or her marginal propensity to consume is one.
B) he or she saves much less.
C) he or she can consumption smooth.
D) his or her marginal propensity to consume is equal to 1/T if he or she lives T periods.
E) his or her future consumption is equal to zero.

Question

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The Answer of If an individual has no access to credit markets:
A) his or her marginal propensity to consume is one.
B) he or she saves much less.
C) he or she can consumption smooth.
D) his or her marginal propensity to consume is equal to 1/T if he or she lives T periods.
E) his or her future consumption is equal to zero.

If an Individual Has No Access to Credit Markets