The Line That Connects the Maximum That One Can Consume

question 35

Multiple Choice

The line that connects the maximum that one can consume this year (now, on the horizontal axis) and the maximum one can consume next year:

• A)has a slope of (1 + r).
• B)has a slope of - (1 + r).
• C)has a slope of r.
• D)has a slope of 1/r.

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