In Irving Fisher's Two-Period Consumption Model, If Y

question 46

Multiple Choice

In Irving Fisher's two-period consumption model, if Y
1
= 20,000, Y
2
= 15,000, and the interest rate r is 0.50 (50
Percent) , then the maximum possible consumption in period two is:

• A)15,000.
• B)25,000.
• C)35,000.
• D)45,000.