Patience Has a Utility Function U(c₁, C₂) , Where

question 22

Multiple Choice

Patience has a utility function U(c₁, c₂) , where c₁ is her consumption in period 1 and c₂ is her consumption in period 2. Her income in period 1 is 3 times 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) 0.75
• B) 0.13
• C) 0.25
• D) 0
• E) 0.38

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Definitions:

Group Identification

The psychological process by which individuals align themselves with particular social groups, adopting the group's norms, values, and behavior.

Self-Esteem

The individual's subjective evaluation of their own worth, encompassing beliefs about oneself as well as emotional states such as triumph, despair, pride, and shame.

Oppressed Groups

Communities or social groups that face systemic inequalities, discrimination, and injustices due to societal power imbalances.

Structures of Oppression

Systematic societal patterns that disadvantage certain groups while privileging others, including but not limited to racism, sexism, and classism.