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Patience Has a Utility Function U(c1, C2) , Where

Question 22

Multiple Choice

Patience has a utility function U(c1, c2) Patience has a utility function U(c<sub>1</sub>, c<sub>2</sub>) , 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 3 times 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) 0.75 B) 0.13 C) 0.25 D) 0 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 3 times 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) 0.75
B) 0.13
C) 0.25
D) 0
E) 0.38

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