In a two-period model, the same quantity of a resource will be used in both time periods

a. Whenever the discount rate is set equal to the rate price is increasing
b. Whenever the discount rate is zero and the marginal net benefit curves are equal
c. Whenever the discount rate is zero
d. Whenever the supply constraint is binding
e. Whenever Hotelling's rule applies


Ans: b. Whenever the discount rate is zero and the marginal net benefit curves are equal

Economics

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