If We Represents a Two-Period Consumer's Lifetime Wealth and R

question 43

Multiple Choice

If we represents a two-period consumer's lifetime wealth and r denotes the real rate of interest,the vertical (future consumption) intercept of the consumer's budget line is equal to

• A) we.
• B) (1 + r)we.

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Definitions:

Uncertainty

A condition where the outcome of an event or the effect of a decision is unknown.