Figure 21-32 the Figure Shows Three Indifference Curves and a Budget

question 406

Short Answer

Figure 21-32 The figure shows three indifference curves and a budget constraint for a consumer named Hannah. When young, Hannah works and earns income. When old, she is retired and earns no income.
-Refer to Figure 21-32. At two of the four labeled points, Hannah is equally happy. Identify those two points.

---

Definitions:

Investments

Items or resources purchased with the aim of earning revenue or increasing in value as time progresses.

Deposit

A sum of money placed or kept in a bank account, usually to gain interest.

Future Value

The amount of money an investment is expected to grow to over a period at a specified rate of interest or return.