Individuals who have restricted access to credit markets must rely on transitory income to pay for unexpected expenses.
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Q87: The left-hand side of the Euler equation,
Q88: If the Euler equation did not hold,
Q89: The consumer's lifetime utility is given as
Q90: In the intertemporal budget constraint, wealth is
Q91: We can treat all households as homogeneous.
Q93: Behavioral economics treats all households as heterogeneous.
Q94: Consumption smoothing is an implication of the
Q95: For any two periods, t and k,
Q96: With logarithmic utility, the Euler equation is
Q97: Household consumption accounts for about one-half of
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