Multiple Choice
Harvey Habit has a utility function U(c1, c2) = min{c1, c2}.If he had an income of $440 in period 1 and $880 in period 2 and if the interest rate were 20%, how much would Harvey choose to spend on bread in period 1?
A) $1,280
B) $320
C) $213.33
D) $960
E) $640
Correct Answer:
Verified
Correct Answer:
Verified
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