The saving-investment analysis for large open economies is somewhat more complicated than the analysis for small open economies mainly because ________.
A) there is more information to keep track of for larger economies
B) there are more unknowns in larger economies
C) a larger economy may actually affect the world economy
D) all of the above
E) none of the above
Question 2
The consumer's lifetime budget constraint states that
A) the present value of lifetime consumption must be equal to the present value of lifetime gross income.
B) the present value of lifetime consumption must be equal to the present value of lifetime disposable income.
C) the present value of lifetime consumption plus the present value of lifetime taxes to be paid must be equal to the present value of lifetime income.
D) the present value of lifetime taxes to be paid by the consumer must be equal to the present value of government spending.
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