Shorter answers

1. budget constraints when young and when old
2. lifetime budget constraint
3. present value
4. consumption smoothing and preferences
5. temporary and permanent income (and savings)
6. consumer durables
7. consumer non-durables
8. aggregate savings
9. Ricardian equivalence (easy version)
10. o§er curve for savings
11. supply curve for savings
12. uses of money
13. characteristics of a good money
14. types of money
15. equation of exchange
16. velocity of money

Longer answers
1. Explain how individuals make their savings decisions (preferences and bud-get constraints)

2. Explain how an individual could be either a borrower or a saver and what this depends on.

3. How does a tax on income from lending change the budget constraint

4. Show how a temporary income increase changes savings

5. Show how a permanent income increase changes savings

6. Explain how to Önd the equilibrium market interest rate in an economy where all individuals are alike and there is no government or other assets

7. Explain how to Önd the equilibrium market interest rate in an economy where all individuals are alike and the government is borrowing (and will pay for the borrowing by taxing the next generation when they are young)

8. Is there a limit to how much a government can borrow? Explain

9. Explain how Ricardian Equivalence works. Easy version

10. Explain how to get the quantity theory from the equation of exchange

11. Explain how to get an equilibrium (with a stationary state ináation rate) in a cash in advance model

12. Explain how ináation e§ects consumption in a cash in advance model