If We Represents a Two-Period Consumer's Lifetime Wealth and R

question 49

Multiple Choice

If we represents a two-period consumer's lifetime wealth and r denotes the real rate of interest, the vertical (future consumption) intercept of the consumer's budget line is equal to

• A) we.
• B) we(1 + r).
• E) -(1 + r)c + we(1 + r).