Multiple Choice
A consumer's budget constraint for two periods with positive interest rate r may be represented by the equation:
A) C1 + C2 = Y1 + Y2.
B) C1 + C2/(1 + r) = Y1 + Y2/(1 + r) .
C) C1 + C2(1 + r) = Y1 + Y2(1 + r) .
D) C1/(1 + r) + C2 = Y1/(1 + r) + Y2.
Correct Answer:
Verified
Correct Answer:
Verified
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