The left-hand side of the Euler equation, $\left( c _ { \text {future } } / c _ { \text {todev } } \right) = \beta ( 1 + R )$
, represents total lifetime consumption, in dollars.

Name: The left-hand side of the Euler equation, $\left( c _ { \text {future } } / c _ { \text {todev } } \right) = \beta ( 1 + R )$ , represents total lifetime consumption, in dollars.
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Question

The left-hand side of the Euler equation, $\left( c _ { \text {future } } / c _ { \text {todev } } \right) = \beta ( 1 + R )$ 
, represents total lifetime consumption, in dollars.

Quizplus · Accepted Answer

The left-hand side of the Euler equation represents the intertemporal consumption growth rate, not total lifetime consumption in dollars.

The Left-Hand Side of the Euler Equation (cfuture /ctodev )=β(1+R)\left( c _ { \text {future } } / c _ { \text {todev } } \right) = \beta ( 1 + R )(cfuture ​/ctodev ​)=β(1+R)

The Left-Hand Side of the Euler Equation $\left( c _ { \text {future } } / c _ { \text {todev } } \right) = \beta ( 1 + R )$