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

Question 23

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 2 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 B) 0.08 C) 0.30 D) 0.15 E) 0.23 , where c1 is her consumption in period 1 and c2 is her consumption in period 2. Her income in period 1 is 2 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
B) 0.08
C) 0.30
D) 0.15
E) 0.23

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