The ______ budget constraint shows the tradeoff between present and future consumption.
a. utility-maximizing
b. time-value of money
c. intertemporal choice
d. inflation
Answer: c. intertemporal choice
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In the simplest Keynesian model of the determination of income, interest rates are assumed to be
A) exogenous and to gradually change. B) endogenous and to gradually change. C) exogenous and to remain constant. D) endogenous and to remain constant.
If the complicated technology costs $10million to develop while the simple technology costs $2million to develop, which technology is more profitable to develop?
a. The simple voice-activated software b. The complicated thought-activated software c. Neither of the software d. Need more information
Paper money, such as the U.S. dollar, the Israeli shekel, or the euro, that is not backed by and is not convertible into any other good, is called
a. gold-exempt money b. specie money c. paper-valued money d. government-generated money e. fiat money
If the economy unexpectedly went from inflation to deflation,
a. both debtors and creditors would have reduced real wealth. b. both debtors and creditors would have increased real wealth. c. debtors would gain at the expense of creditors. d. creditors would gain at the expense of debtors.