The Consumer's Lifetime Budget Constraint States That

question 37

Multiple Choice

The consumer's lifetime budget constraint states that

• A)the present value of lifetime consumption must be equal to the present value of lifetime disposable income.
• B)the present value of lifetime consumption must be equal to the present value of lifetime gross 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.
• E)he present value of lifetime consumption must be equal to the present value of savings.

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Definitions:

Dependent Variable

A variable whose value depends on that of another variable.

Correlation Coefficient

A numerical measure that describes the strength and direction of a relationship between two variables.

Independent Variable

The variable that is manipulated or changed in an experiment to see if it affects the outcome.

T-test

A statistical test used to compare the means of two groups and determine if they are statistically significantly different.