Multiple Choice
A decrease in income in period 1 will:
A) rotate the budget line clockwise around the endowment point.
B) rotate the budget line counter- clockwise around the endowment point.
C) parallel shift the budget line up.
D) parallel shift the budget line down.
Correct Answer:
Verified
Correct Answer:
Verified
Q18: A person who defers consumption to another
Q19: A household faces a higher interest rate
Q20: According to the separation theorem, individuals choose
Q21: The rate of interest you receive for
Q22: If C<sub>0</sub><sub> </sub>and C<sub>1 </sub>are both normal
Q24: In periods 0 and 1, Ralph consumed
Q25: The rate of interest that people will
Q26: An individual's intertemporal budget for current consumption
Q27: If a person's marginal rate of time
Q28: Future values are:<br>A)the inverse of present values.<br>B)amounts