The asset pricing equation is often written as 1: Et[(1+ r},t+l)MI+1] Which is the most accurate description of M,+ I? It is the ratio of marginal consumption across different states of nature It is the ratio of discounted marginal utilities of consumption across two periods. It is the present discounted value of all future stocks prices and dividends. It is the present discounted value of the future resale value of an asset in equilibrium. Intertemporal efciency in consumption is least likely: to hold when An individual has to borrow against her future income to smooth out her consumption. An individual takes account of expected future consumption streams. An individual faces a negative income shock but is unable to borrow. An individual's marginal utility remains constant over time after adjusting for her time preference and the real interest rate