In a Competitive General Equilibrium, Which of the Following Relations $M R S _ { X , Y } = M R T _ { X , Y }$

question 9

Multiple Choice

In a competitive general equilibrium, which of the following relations will not be true?

• A) \(M R S _ { X , Y } = M R T _ { X , Y }\).
• B) \(M R T _ { X , Y } = M C X / M C y\).
• C) \(M R S _ { X Y } = P _ { X } / P _ { Y }\).
• D) \(M R T _ { X , Y } = w / r\).

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Definitions:

Bonds Issued

refers to the creation and sale of bonds by an issuer to investors as a form of borrowing, usually to raise capital for long-term investments.

Semiannual Interest

An interest payment made twice a year on a loan or investment.

Issuance Date

The date on which a financial instrument (e.g., bond, stock, or certificate of deposit) is issued or made available for sale.

Accrued Interest

The interest that has accumulated on a bond or loan but has not yet been paid to the lender, often recorded as a current liability on the balance sheet.