If the Euler equation did not hold, then the real interest rate would be zero.

Name: If the Euler equation did not hold, then the real interest rate would be zero.
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The Euler equation is derived from intertemporal optimization of consumption and is used to determine the optimal level of consumption over time. If it did not hold, it would mean that consumption behavior is not consistent with intertemporal optimization, but it would not necessarily imply that the real interest rate would be zero.

If the Euler Equation Did Not Hold, Then the Real