The Keynesian Consumption Function and the Theory of Intertemporal Choice

question 39

Multiple Choice

The Keynesian consumption function and the theory of intertemporal choice are consistent for households ________.

• A)with a binding budget constraint
• B)with little or no initial wealth
• C)whose consumption remains positive,even if income is zero
• D)whose consumption cannot exceed current income

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Definitions:

Thermodynamics

The branch of physics that deals with the relationships between heat and other forms of energy, and how these affect matter.

Usable Energy

energy that is available for doing work in a system, after accounting for energy lost as heat or in other unusable forms.

Transformed

Altered in form, appearance, or structure, especially significantly so.

Substrate Concentration

The amount of substrate present that can be acted upon by enzymes in a chemical reaction.