Which of the following represents the financial asset arbitrage equation? R time

Question

Which of the following represents the financial asset arbitrage equation? R times p_= dividend + delta p_R times p_k = MPK + delta p_k R = dividend + delta p_MPK times uc = dividend + delta p_R times d- = delta p_Which of the following represents the government's budget constraint? G_t = iY_t G_t + Tr_t + iB_t = T_t G_t + Tr_t + iB_t = Y_t G_t = T_t + Tr_t + iB_t + delta B_t + delta M_t G_t + Tr_t + iB_t = T_t + delta B_t + 1 + delta M_t + 1 The national income identity can be rearranged to show that___equals__. Private saving + Government saving + Foreign saving; Investment Private saving - Government saving + Investment; the budget deficit Private saving - Government saving - Foreign saving; Investment Private saving; Investment Private saving + Government saving + Foreign saving; tax revenues

Explanation / Answer

16 b

17 e

18 a

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