Multiple Choice
Harvey Habit has a utility function U(c1, c2) = min{c1, c2}. If he had an income of $1,230 in period 1 and $615 in period 2 and if the interest rate were 0.05, how much would Harvey choose to spend on bread in period 1?
A) $1,860
B) $465
C) $1,395
D) $310
E) $930
Correct Answer:
Verified
Correct Answer:
Verified
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