The equation MRS = 1 + r means that ________
A) consumers prefer to avoid fluctuations in consumption
B) at the margin, consumption grows at the real interest rate
C) any movement along the budget constraint would cause a decrease in the consumer's utility
D) consumer utility is a positive function of the real interest rate
C
Economics
You might also like to view...
Refer to Figure 9-3. If there was no quota, how many pounds of peanuts would be imported?
A) 16 million B) 28 million C) 30 million D) 40 million
Economics
Limit commitment occurs when
A) collateral is required to get a loan. B) one cannot borrow as much as necessary to conduct business. C) one cannot be forced to repay a loan. D) the bank can sell your loan to another bank.
Economics