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Refer to Figure 10

Question 32

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Refer to Figure 10.1.Suppose the individual is initially at point b.Based on the figure,the individual is currently: Refer to Figure 10.1.Suppose the individual is initially at point b.Based on the figure,the individual is currently:   A)  a saver, which is his optimal choice. B)  a borrower, which is his optimal choice. C)  a saver, though borrowing would increase his utility. D)  a borrower, though saving would increase his utility.


A) a saver, which is his optimal choice.
B) a borrower, which is his optimal choice.
C) a saver, though borrowing would increase his utility.
D) a borrower, though saving would increase his utility.

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