For a Competitive Equilibrium in a Two-Period Model, Which of the Following

question 36

Multiple Choice

For a competitive equilibrium in a two-period model, which of the following is true?

• A) each consumer picks first- and second-period consumption given the real interest rate
• B) there must be an equal number of borrowers and lenders
• C) the present value of government spending must be greater than the present value of taxes
• D) the financial market clears
• E) all deficits are financed by issuing debt

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Definitions:

Anorexics

Individuals suffering from anorexia, an eating disorder characterized by an obsessive fear of gaining weight and severely restricting food intake.

Full Recovery

The process or outcome of returning to a state of health, wellbeing, or functional normality after illness, injury, or a challenging situation.

Bulimia Nervosa

Eating disorder in which a person regularly eats huge quantities of food and then purges the body by laxatives, induced vomiting, fasting, or excessive exercise.

Behavioral Pattern

Repetitive actions or ways of behaving that are characteristic of an individual or group, often analyzed in psychological contexts.