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1. Which of the following variables represents first period household consumption? а. b. a2 с. С1 d. 2 3. If the household can borrow and lend, an increase in causes which of the following to decrease? а. b. С2 a2 с. d. all of the above 4. If the household is credit-constrained, an increase in 2 causes which of the following to increase? а. b. С2 a2 с. d. none of the above 5. Suppose a household can borrow and lend in a perfectly competitive credit market. Assume = 0.2 and '2 = 0.10. The value for the optimal choice of "2 when 1 = 10 and 2 = 0 is а. 1.67

1. Which of the following variables represents first period household consumption? а. b. a2 с. С1 d. 2 3. If the household can borrow and lend, an increase in causes which of the following to decrease? а. b. С2 a2 с. d. all of the above 4. If the household is credit-constrained, an increase in 2 causes which of the following to increase? а. b. С2 a2 с. d. none of the above 5. Suppose a household can borrow and lend in a perfectly competitive credit market. Assume = 0.2 and '2 = 0.10. The value for the optimal choice of "2 when 1 = 10 and 2 = 0 is а. 1.67

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1. Which of the following variables represents first period household consumption? а. b. a2 с. С1 d. 2 3. If the household can borrow and lend, an increase in causes which of the following to decrease? а. b. С2 a2 с. d. all of the above 4. If the household is credit-constrained, an increase in 2 causes which of the following to increase? а. b. С2 с. a2 d. none of the above 5. Suppose a household can borrow and lend in a perfectly competitive credit market. Assume = 0.2 and '2 = 0.10. The value for the optimal choice of "2 when1 = 10 and 2 = 0 is а. 1.67 b. 0.00 с. -5.9 d. -7.58
Transcribed Image Text:1. Which of the following variables represents first period household consumption? а. b. a2 с. С1 d. 2 3. If the household can borrow and lend, an increase in causes which of the following to decrease? а. b. С2 a2 с. d. all of the above 4. If the household is credit-constrained, an increase in 2 causes which of the following to increase? а. b. С2 с. a2 d. none of the above 5. Suppose a household can borrow and lend in a perfectly competitive credit market. Assume = 0.2 and '2 = 0.10. The value for the optimal choice of "2 when1 = 10 and 2 = 0 is а. 1.67 b. 0.00 с. -5.9 d. -7.58
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