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

question 61

Multiple Choice

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

• A)The financial market clears.
• 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)Each consumer picks first- and second-period consumption given the real interest rate.
• E)All deficits are financed by issuing debt.

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Definitions:

Strength

Refers to the internal capabilities, resources, and qualities of a company that give it a competitive advantage.

Market Segment

A group of consumers who share similar needs, characteristics, or behaviors, and are targeted by businesses with specific products or marketing campaigns.

Customer Value Proposition

A statement or promise made by a company that summarizes the benefits a consumer will receive by using the company's product or service.

Targeted Buyers

Individuals or groups identified as the most likely to purchase a product or service, based on demographic, psychographic, or behavioral characteristics.