Solved

When the Consumer Has Chosen His or Her Optimal Values

Question 10

Multiple Choice

When the consumer has chosen his or her optimal values of first-period and second-period consumption, the marginal rate of substitution equals:

A) 1 plus the interest rate r.
B) 1 minus the interest rate r.
C) 1 divided by the interest rate r.
D) the interest rate r.

Related Questions

Q5: If a consumer is a borrower in

Q6: If consumers want consumption to be as

Q7: Recent work on the consumption function suggests

Q8: According to the permanent income hypothesis, households

Q9: If consumers obey the permanent-income hypothesis and

Q11: The average propensity to consume is the:<br>A)

Q12: In Irving Fisher's two-period model, if the

Q13: In Irving Fisher's two-period model, if the

Q14: In the Fisher two-period model, if the

Q15: Assume that Andrew Marcus is 25