Question 22
Multiple Choice
The household problem is to solve:
A) maxctadey ⋅cMur U=u(ctodap ,cfuture )
B) maxctodoy ⋅cMurr ctoday +cfuture (1+R) =Xˉ, subject to U=u(ctoday ,cfuture )
C) mincitdoy ⋅cMurs U=u(ctoduy ) +βu(cfuture ) , subject to ctodup +cfuture (1+R) =Xˉ
D) maxctodoby ,cAurre U=u(ctodav ) +βu(cfuture ) , subject to ctoday +1+Rcfutare =Xˉ
E) maxctadoy ⋅cMurs U=u(ctoday ) +βu(cfuture ) , subject to ctoday +cfuture (1+R) =ytoday +yfuture (1+R)
Correct Answer:

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