Multiple Choice
I am always indifferent between a unit of consumption today and tomorrow and the interest rate is 5%.
A) My intertemporal indifference curve is horizontal.
B) My intertemporal indifference curve is a straight line with slope 21.
C) I will spend all of my current and future income on consumption today.
D) I will spend 5% more on consumption today than on consumption tomorrow.
E) I will spend 5% more on consumption tomorrow than on consumption today.
Correct Answer:
Verified
Correct Answer:
Verified
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