Micro Flashcards
1
Q
composite goods
A
p2 = 1
x2 is the composite goof
2
Q
ednogenous income
A
replacing m by the amount of the two goods held (endowment)
3
Q
endownment
A
amount of goods i hold before i go to the market
4
Q
differnece between pivoting
A
pivots around endowment
pivots around an axis (check lecture)
5
Q
interest rates
A
allows for clearimg of the loanbale funds markset- rate at which discount rate is set
6
Q
what does discout rate be seen as
A
peoples impaience to hold off spemdig
7
Q
A
