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    Macroeconomics Study Set 4
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    Exam 9: A Two-Period Model: The Consumption–Savings Decision and Credit Markets
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    If We Represents a Two-Period Consumer's Lifetime Wealth and R
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If We Represents a Two-Period Consumer's Lifetime Wealth and R

Question 49

Question 49

Multiple Choice

If we represents a two-period consumer's lifetime wealth and r denotes the real rate of interest, the vertical (future consumption) intercept of the consumer's budget line is equal to


A) we.
B) we(1 + r) .
C) If we represents a two-period consumer's lifetime wealth and r denotes the real rate of interest, the vertical (future consumption) intercept of the consumer's budget line is equal to A)  we. B)  we(1 + r) . C)    D)    E)  -(1 + r) c + we(1 + r) .
D) If we represents a two-period consumer's lifetime wealth and r denotes the real rate of interest, the vertical (future consumption) intercept of the consumer's budget line is equal to A)  we. B)  we(1 + r) . C)    D)    E)  -(1 + r) c + we(1 + r) .
E) -(1 + r) c + we(1 + r) .

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