In the Real Intertemporal Model with Investment

question 6

Multiple Choice

In the real intertemporal model with investment

• A) we abstract from labor/leisure choice.
• B) consumers always save a constant fraction of their income.
• C) there are many different consumers.
• D) consumers make choices over current consumption and leisure, and future consumption and leisure.

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Definitions:

Tariff

A tax or duty to be paid on a particular class of imports or exports, used by governments to regulate trade.

Normal Trade Relations

A GATT principle of trade law which requires that WTO member states treat like goods coming from other member states on an equal basis.

GATT

General Agreement on Tariffs and Trade, a multilateral treaty aimed at reducing global barriers to trade and promoting international commerce.

WTO

The World Trade Organization, an international body that deals with the rules of trade between nations.