MrOBKandle Has a Utility Function C₁c₂, Where C₁ Is His

question 9

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 $70,000 in period 1 and the interest rate increased from 10 to 16%,

• A)his savings would increase by 6% and his consumption in period 2 would also increase.
• B)his consumption in both periods would decrease.
• C)his savings would not change but his consumption in period 2 would increase by 2,100.
• D)his consumption in both periods would increase.
• E)his consumption in period 1 would decrease by 16% and his consumption in period 2 would also decrease.

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Definitions:

Breathing Rate

The number of breaths taken per minute, an important vital sign reflecting respiratory health and metabolic demand.

Cats

Domesticated feline animals kept as pets or for catching pests, known for their agility, independence, and playful behavior.

Sheep

A domesticated ruminant mammal, Ovis aries, kept as livestock for its wool, meat, and milk.

Intelligence

The ability to acquire, understand, and use knowledge, including the capability to reason, solve problems, learn from experience, and adapt to new situations.