Multiple Choice
According to the separation theorem, individuals choose consumption expenditures by choosing the one that maximizes utility while making the present value of income:
A) not larger than the present value of consumption expenditures.
B) independent of the present value of consumption expenditures.
C) not smaller than the present value of consumption expenditures.
D) equal to the present value of consumption expenditures.
Correct Answer:
Verified
Correct Answer:
Verified
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