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

question 54

Multiple Choice

For a competitive equilibrium in a two-period model,all of the following must be true except

• 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 government's present-value budget constraint holds.
• D) the credit market clears.

---

Definitions:

Vaccinated

The process of receiving a vaccine to stimulate the body's immune response against specific diseases.

Cervicitis

Inflammation of the cervix, often caused by infection, and can lead to discomfort or more serious reproductive issues if untreated.

Bacteria

Microscopic, single-celled organisms found in various environments, some of which can cause diseases in humans and other living beings.

Herpes Infection

A viral infection caused by the herpes simplex virus (HSV), which manifests as painful blisters on the mouth or genitals.