We collapse the consumer's current-period and future-period budget constraints into a single lifetime budget constraint by
A) assuming no default.
B) substituting for savings.
C) eliminating consumption smoothing.
D) assuming the consumer knows the future.
B
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
By current U.S. law, anyone generating, storing, or transporting hazardous waste must pay to clean it up if it leaks or is otherwise discharged into the environment. This law has been in effect
a. since World War II b. since 1960 c. since 1970 d. since 1980 e. only since 1990
A bank failure occurs when a bank
a. cannot call in its loans b. spends all of its reserves c. is unable to meet its depositors' requests to withdraw funds d. cannot make any more loans e. makes bad loans
Our educational standards today.
A. are the highest in history. B. are much higher than they were 50 years ago. C. are the same as they were 50 years ago. D. are much lower than they were 50 years ago.