DSGE Models That Contain Households and Firms That Are Identical

question 42

Multiple Choice

DSGE models that contain households and firms that are identical are known as

• A)heterogeneous-agent models.
• B)homogeneous-agent models.
• C)dynamic models.
• D)multi-layered models.

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Definitions:

Capital

The owner’s investment of equity in the company.

Debit

The left-hand side of any account. A number entered on the left side of any account is said to be debited to an account.

Credit

The right-hand side of any account. A number entered on the right side of any account is said to be credited to an account.

Investment Percentage

The proportion of an investment in relation to the total market value or the capital of a project or entity.