Multiple Choice
The property of diminishing marginal rate of substitution implies that
A) the more current consumption the consumer has, the less future consumption she is willing to give up for one more unit of current consumption.
B) the less current consumption the consumer has, the less future consumption she is willing to give up for one more unit of current consumption.
C) the more current consumption the consumer has, the more future consumption she is willing to give up for one more unit of current consumption.
D) the indifference curves are bowed away from the origin.
E) the indifference curves have a constant slope.
Correct Answer:

Verified
Correct Answer:
Verified
Q55: If we represents a two-period consumer's
Q56: The endowment point is the consumption bundle
Q57: In the case where current and future
Q58: For all bonds to be indistinguishable,<br>A) all
Q59: A permanent decrease in taxes leads to<br>A)
Q61: An increase in second-period income results in<br>A)
Q62: The two primary explanations for the excess
Q63: The government's current period budget constraint is<br>A)
Q64: The phenomenon that some consumers pay a
Q65: The government's present value budget constraint states