The Intertemporal Budget Constraint for a Consumer Can Be Expressed

question 27

True/False

The intertemporal budget constraint for a consumer can be expressed by setting the present value of her lifetime consumption equal to the future value of her endowment.

---

Definitions:

Agreements

Arrangements or contracts between parties defining their rights, responsibilities, and relationships.

Kinked-Demand

A demand curve hypothesis in oligopolistic markets that explains why firms may not change their prices even when costs change, due to competitive reactions.

Oligopolist

A firm or business that is part of a market structure where a few companies dominate the industry, often leading to limited competition.