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Patience Has a Utility Function , Where C1 Is

Question 60

Multiple Choice

Patience has a utility function Patience has a utility function , where c<sub>1</sub> is her consumption in period 1 and c<sub>2</sub> is her consumption in period 2. Her income in period 1 is twice as large as her income in period 2. At what interest rate will she choose to consume the same amount in period 1 as in period 2? A) 0.40 B) 0.10 C) 0.20 D) 0 E) 0.30 , where c1 is her consumption in period 1 and c2 is her consumption in period 2. Her income in period 1 is twice as large as her income in period 2. At what interest rate will she choose to consume the same amount in period 1 as in period 2?


A) 0.40
B) 0.10
C) 0.20
D) 0
E) 0.30

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