The Optimal Consumption Rule for All Goods Requires

question 1

Multiple Choice

The optimal consumption rule for all goods requires:

• A) the marginal utility of all goods consumed divided by the price to be equal to the budget constraint.
• B) the marginal utility of all goods consumed to exceed the total utility of all goods.
• C) the marginal utility of all goods consumed divided by the respective price to be equal.
• D) the prices of all goods to be equal.

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Definitions:

Present Value Tables

A set of tables used to calculate the present value of an amount of money to be received in the future by taking into account a specific interest rate.