A Key Variable in Intertemporal Choice Is

question 4

Multiple Choice

A key variable in intertemporal choice is

• A)investment.
• B)real interest rate.
• C)total factor productivity.
• D)output per worker.
• E)consumption.

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Definitions:

Inferior Good

A type of good whose demand decreases when consumer income rises, unlike normal goods, for which demand increases with income.

Quantity Demanded

The amount of a product consumers are willing and able to purchase at a given price over a specified time period.

Income

The money received by an individual or business for work done, from investments, or from the sale of goods or services.

Cross-Price Elasticity

An index indicating the variation in demand for a particular item as a result of the price alteration of a different item.