The Keynesian consumption function and the theory of intertemporal choice are consistent for households ________
A) with a binding budget constraint
B) with little or no initial wealth
C) whose consumption remains positive, even if income is zero
D) whose consumption cannot exceed current income
D
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Common resources are overused because:
a) the marginal private benefit will always exceed the marginal social cost b) the marginal social benefit is not taken into consideration by producers c) social costs are controlled by quotas d) the social costs outweigh the private costs
An externality is:
a. always a benefit to the recipient. b. always a detriment to the recipient. c. an activity that occurs in a business which is unknown to management. d. unintended benefits or costs imposed on third parties as a result of economic activity. e. an act, caused by a firm located in this country, which has an effect on a person in a foreign country.