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6.4   Appendix to Chapter 6: More Intertemporal Trade 1) The price

Question : 6.4   Appendix to Chapter 6: More Intertemporal Trade 1) The price : 1407626

 

6.4   Appendix to Chapter 6: More on Intertemporal Trade

1) The price of ________ consumption in terms of ________ consumption is ________.

A) future; current; 1/(1 + r)

B) present; future; 1/(1 + r)

C) future; current; r

D) present; future; r

E) future; current; 1 + r

2) The intertemporal budget constraint is defined as:

A) DP + DF/(1 + r) = QP + QF/(1 + r)

B) V = QP + QF/(1 + r)

C) V = DP + DF/(1 + r)

D) DF + DP/(1 + r) = QF + QP/(1 + r)

E) DP + DF(1 + r) = QP + QF(1 + r)

3) Describe the nature of trade between two countries based on intertemporal comparative advantage.

 

 

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