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

question 1

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 5 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) 0.10
• B) 0
• C) 1
• D) 0.20
• E) 0.30

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Definitions:

Interviews

A method of data collection or employment selection involving a conversation between two or more people, where questions are asked to obtain information from the interviewee.

One-On-One Interaction

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Consumer Participants

Individuals who actively engage in the marketplace by purchasing, using, and providing feedback on goods and services.

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A qualitative research method involving guided group discussions used to gather participants' attitudes, perceptions, and responses toward a specific topic or product.