1.

A one-period one dollar bond is a promise to repay O one dollar in the second period 1/(1+r) units of goods in the second period O runits of goods in the second period (1 + r) units of goods in the second periodThe consumer's lifetime budget constraint states that O the present value of lifetime consumption must be equal to the present value of lifetime gross income O the present value of lifetime consumption must be equal to the present value of lifetime disposable income. O the present value of lifetime consumption plus the present value of lifetime taxes to be paid must be equal to the present value of lifetime income. O the present value of lifetime taxes to be paid by the consumer must be equal to the present value of government spending