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In the Fisher Two-Period Model, the Consumer Achieves His or Her

Question 114

Multiple Choice

In the Fisher two-period model, the consumer achieves his or her optimum combination of current and future consumption by selecting:


A) any combination on his or her highest indifference curve.
B) the combination on his or her highest indifference curve that is tangent to his or her budget constraint.
C) any combination on his or her budget constraint.
D) the combination on his or her budget constraint in which period-one consumption equals period-one income and period-two consumption equals period-two income.

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