The horizontal intercept of the intertemporal budget constraint is referred to as
A. the future value of present income.
B. the future value of lifetime income.
C. the present value of lifetime income.
D. the current value of future income.
Answer: C
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Over the past 50 years, the U.S. labor force participation rate has decreased for
i. men. ii. women. iii. the over-all labor force. A) i only B) ii only C) i and iii D) ii and iii E) i, ii, and iii
A warranty can help to overcome asymmetric information
Indicate whether the statement is true or false
Without a central bank, such as the Federal Reserve System, banks, if left to themselves, are likely to
a. hold greater excess reserves than socially desirable during a recession b. create insufficient money when the economy is at full employment c. engage in money creation opportunities when the economy is in a recession d. hold no reserves when the economy is in a recession e. lend the least possible amount when the economy is at full employment
The demand curve for a perfectly competitive firm is
A) elastic at relatively high prices and inelastic at relatively low prices. B) perfectly elastic. C) perfectly inelastic. D) unitary elastic.