The Optimal Trade-Off Between Current Consumption Goods and Future Consumption

question 2

Multiple Choice

The optimal trade-off between current consumption goods and future consumption goods is expressed as

• A) MRSC,C' = 1 + R.
• B) MRSC,C' = 1 + r.
• C) MRSC,C' = .
• D) MRSC,C' = 1 + i.

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