Patience Has a Utility Function , Where C₁ Is

question 35

Multiple Choice

Patience has a utility function , where c₁ is her consumption in period 1 and c₂ is her consumption in period 2. Her income in period 1 is twice as large as her income in period 2. At what interest rate will she choose to consume the same amount in period 1 as in period 2?

• A) 0
• B) 0.25
• C) 0.13
• D) 0.50
• E) 0.38

---

Definitions:

Absolutely Refractory

The state of an axon in the repolarizing period, during which a new action potential cannot be elicited (with some exceptions) because gate 2 of sodium channels, which are not voltage-activated, are closed.

Relatively Refractory

The state of an axon in the later phase of an action potential, during which higher-intensity electrical current is required to produce another action potential; a phase during which potassium channels are still open.

Periods

In geology, divisions of geological time; in biology, typically refers to the menstrual cycle, a regular natural change that occurs in the reproductive system.

EPSP

Excitatory postsynaptic potential; a temporary increase in postsynaptic membrane potential caused by the flow of positively charged ions into the postsynaptic cell, making it more likely for a neuron to fire.