If a Person's Inter-Temporal Utility Function Is Given by

question 7

Multiple Choice

If a person's inter-temporal utility function is given by ,lower values for Will:

• A)make this person more averse to consumption fluctuations.
• B)make this person less averse to consumption fluctuations.
• C)reduce overall consumption levels.
• D)reduce savings.

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Definitions:

Interest-Bearing Note

A debt instrument that pays interest to the holder until its maturity date.

Issuance of Note

The act of creating a promissory note by which a borrower agrees to pay back a lender according to set terms.

Discounted Note

A promissory note whose proceeds are less than its face value due to interest being deducted in advance.

Cash Proceeds

The total cash received from transactions, such as the sale of an asset or the issuance of shares.