MrOBKandle Has a Utility Function C₁c₂, Where C₁ Is

question 14

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 $40,000 in period 1 and the interest rate increased from 10 to 12%,

• A)his consumption in both periods would increase.
• B)his savings would increase by 2% and his consumption in period 2 would also increase.
• C)his consumption in both periods would decrease.
• D)his savings would not change but his consumption in period 2 would increase by 400.
• E)his consumption in period 1 would decrease by 12% and his consumption in period 2 would also decrease.

---

Definitions:

Section 5

This term is too general to define without context; it could refer to Section 5 of many different statutes or laws, each with its own specific provisions.

President

The chief executive officer of a corporation, country, or other organization, typically responsible for the management and leadership of the organization.

Commissioners

Individuals appointed to a commission, which is a governing body or group tasked with making decisions or overseeing a particular area of public concern.

Fair Debt Collection Practices Act

A federal law that limits the behavior and actions of third-party debt collectors attempting to collect debts on behalf of another person or entity.