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Patience Has a Utility Function , Where C1 Is

Question 35

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 B) 0.25 C) 0.13 D) 0.50 E) 0.38 , 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
B) 0.25
C) 0.13
D) 0.50
E) 0.38

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