Author Question: The Keynesian consumption function and the theory of intertemporal choice are consistent for ... (Read 65 times)

swpotter12

  • Hero Member
  • *****
  • Posts: 527
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

Question 2

The costs associated with the user cost of capital include all of the following except
 
  A) the real price of the capital good.
  B) the expected change in the marginal cost of capital based on expectations of the future.
  C) the real interest cost of borrowing to finance the purchase of the capital good.
  D) the depreciation costs associated with actually using the capital good.



Kingjoffery

  • Sr. Member
  • ****
  • Posts: 332
Answer to Question 1

D

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

For a complete list of videos, visit our video library