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If a Person's Inter-Temporal Utility Function Is Given By U(c1,c2)=c1δδ+c2δδ;δ1U \left( c _ { 1 } , c _ { 2 } \right) = \frac { c _ { 1 } ^ { \delta } } { \delta } + \frac { c _ { 2 } ^ { \delta } } { \delta } ; \delta \leq 1

Question 5

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If a person's inter-temporal utility function is given by U(c1,c2) =c1δδ+c2δδ;δ1U \left( c _ { 1 } , c _ { 2 } \right) = \frac { c _ { 1 } ^ { \delta } } { \delta } + \frac { c _ { 2 } ^ { \delta } } { \delta } ; \delta \leq 1 ,lower values for δ\delta will:


A) make this person more averse to consumption fluctuations.
B) make this person less averse to consumption fluctuations.
C) reduce overall consumption levels.
D) reduce savings.

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