For an intertemporal budget constraint concerning saving for retirement, the choice is between present consumption and future consumption.
a. Fungible
b. Utility-maximizing
c. Intertemporal choice
d. Backward-bending
c. Intertemporal choice
The intertemporal choice budget constraint shows the tradeoff between present and future consumption.
You might also like to view...
Suppose a country's net exports equal $1.9 billion. Which of the following will happen if the volume of imports increases by $2 billion without any change in the volume of exports?
A) The country's net exports will be equal to $0.1 billion. B) The country's net exports will become negative. C) The country's net exports will be equal to $3.9 billion. D) The country's net exports will be zero.
The annual rental rate for a machine is
a. the yearly depreciation and maintenance costs for the machine. b. the yearly interest costs associated with owning the machine. c. the initial purchase price of the machine divided by the number of years the machine is expected to last. d. the sum of the yearly depreciation, maintenance, and interest costs associated with owning the machine.
Which of the following is not included in either M1 or M2?
a. U.S. Treasury bills b. small time deposits c. demand deposits d. money market mutual funds
One role government can play in addressing market failure is to:
A. enforce the rules of exchange. B. increase economic uncertainty. C. promote imperfect competition. D. facilitate decision making for private goods.