Question: 3. If the Euler equation did not hold, then: (a) the real interest rate would be zero. (b) a consumer would not spend all her

3. If the Euler equation did not hold, then:

(a) the real interest rate would be zero.

(b) a consumer would not spend all her lifetime wealth.

(c) a consumer could move consumption from the future to the present and increase lifetime

utility.

(d) a consumer could move consumption from the present to the future and increase lifetime

utility.

(e) either (c) or (d).

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