Consumption smoothing is a logical consequence of ________
A) basing decision-making on real rather than nominal interest rates
B) the convexity of indifference curves and the ability to borrow and lend
C) the negative slope fo the intertemporal budget constraint
D) rational expectations
B
Economics
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Assume that the U.S. interest rate is 5%, the European interest rate is 2%, and the future expected exchange rate in one year is $1.224. If the spot rate is $1.16, then the expected dollar return on euro deposits is:
a. 7.52% b. 5% c. 3% d. 2%
Economics
The table above shows three production methods to produce 100 automobiles per day. Which of the three methods is technologically efficient?
A) Method A only B) Method B only C) Method C only D) Method A, B and C are all technologically efficient.
Economics