MrOBKandle Has a Utility Function C₁c₂, Where C₁ Is His

question 10

Multiple Choice

Mr.O.B.Kandle has a utility function c₁c₂, where c₁ is his consumption in period 1 and c₂ is his consumption in period 2.He has no income in period 2.If he had an income of $50,000 in period 1 and the interest rate increased from 10 to 15%,

• A)his savings would increase by 5% and his consumption in period 2 would also increase.
• B)his savings would not change but his consumption in period 2 would increase by 1,250.
• C)his consumption in both periods would increase.
• D)his consumption in both periods would decrease.
• E)his consumption in period 1 would decrease by 15% and his consumption in period 2 would also decrease.

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Definitions:

Behavior Similarities

Patterns or traits in actions or responses that are alike among different individuals or groups.

Oppression

The systematic and unjust treatment or control of individuals or groups by others who are more powerful, often leading to the disadvantaged group's marginalization.

Social Group Membership

The state of belonging to a group that shares common interests, purposes, or identities, influencing an individual's social identity and interactions.

Institutional Levels

Refers to the various stages or echelons of organization within institutions, often classified by hierarchy or complexity.