If You Had a Windfall of $5,000 in the Present

question 6

Multiple Choice

If you had a windfall of $5,000 in the present time period and you save some of it, your saving behavior would likely be due to the fact that

• A)your marginal utility of present income falls as your income goes up.
• B)the extra income changes the slope of your time preference indifference curves making then steeper.
• C)your indifference curves for present and future income are vertical.
• D)your indifference curves for present and future are horizontal.