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
Economics
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Scenario 4.5 indicates that grilled cheese sandwiches and hamburgers are:
A) substitutes. B) complements. C) independent goods. D) none of the above
Economics
If the price system is allowed to function without interference and a surplus occurs, quantity demanded will _____________ and quantity supplied will _____________ until the price falls to its equilibrium.
A. rise; rise B. fall; fall C. rise; fall D. fall; rise
Economics