A positive rate of time preference means that
a. time is relative to consumption
b. consumption in the future is more important than consumption today
c. consumption today is valued less than consumption in the future
d. consumption in the future is valued less than consumption today
e. consumption in the future and consumption today are positively related
D
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Indicate whether the statement is true or false
Which of the following is a limitation of discretionary fiscal policy? i. lawmaking lags ii. estimating potential GDP iii. income gap
A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
Use "wars of attrition" to explain the debate about deficit reduction
What will be an ideal response?
If the price of a slice of pizza falls, Tom can
A. buy more pizza with his paycheck. B. buy fewer soft drinks with his paycheck. C. no longer afford pizza on his paycheck. D. Either A or B is possible.