Last year, Bentley bought a bond for $1,000 that promises to pay $115 a year. This year, a person who buys a bond for $1,000 receives $125 a year. If Bentley were to sell his (old) bond, its price would be approximately

The Dutch Disease refers to a deadly outbreak of influenza that destroyed all international trade for the Netherlands in the 1960s

Indicate whether the statement is true or false

When the borrowing constraint is binding, ________

A) wealth is zero B) current consumption is lower than future consumption C) future consumption is lower than current consumption D) consumption smoothing is not possible