Multiple Choice
Harvey Habit has a utility function U(c1, c2) = min{c1, c2}. If he had an income of $880 in period 1 and $1,320 in period 2 and if the interest rate were 0.20, how much would Harvey choose to spend on bread in period 1?
A) $1,620
B) $360
C) $540
D) $2,160
E) $1,080
Correct Answer:
Verified
Correct Answer:
Verified
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