The Marginal Rate of Substitution Between First-Period Consumption and Second-Period

Multiple Choice

The marginal rate of substitution between first-period consumption and second-period consumption:

A) is the inverse of the slope of an indifference curve, in which first-period consumption is graphed along the horizontal axis.
B) is generally high when first-period consumption is high.
C) indicates by how much first-period consumption changes for a one-unit change in first-period income.
D) reveals the rate at which the consumer is willing to substitute second-period consumption for first-period consumption.