Refer to the Following Figure When Answering
Figure $c _ { 1 }$

Multiple Choice

Refer to the following figure when answering
Figure 16.2: Consumption Function
-In Figure 16.2, point c is equal to the ________ and implies ________.

A) utility of the average of $c _ { 1 }$ and $c _ { 2 }$ ; consumption smoothing
B) utility associated with consuming $c _ { 1 }$ ; risk neutrality
C) utility of consumption; Ricardian equivalence
D) average utility of $c _ { 1 }$ and $c _ { 2 }$ ; a borrowing constraint
E) utility of the average of $c _ { 1 }$ and $c _ { 2 }$ ; a low discount factor