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The Optimal Trade-Off Between Current Consumption Goods and Future Consumption (1+R)(1+r) \frac{(1+R)}{(1+r)}

Question 52

Multiple Choice

The optimal trade-off between current consumption goods and future consumption goods is expressed as


A) MRSC,C' = 1 + R.
B) MRSC,C' = 1 + r.
C) MRSC,C' = (1+R) (1+r) \frac{(1+R) }{(1+r) }
D) MRSC,C' = 1 + i.
E) MRS1,C' PwP(1+r) \frac{P^{\prime} w}{P^{\prime}(1+r) }

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