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.

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Definitions:

Persuasive Messages

Communications designed to influence the attitudes, beliefs, or behaviors of an audience through the use of argumentation, emotional appeals, or credibility.

Intervention Design

involves the creation of a structured plan or strategy aimed at changing processes or behaviors to achieve a specific outcome.

Qualitative Research

A research method that explores and understands the meaning individuals or groups ascribe to social or human problems, often using techniques like interviews, observations, and analysis of text and documents.

Normative

Relating to an ideal standard or model, and pertaining to rules that govern behavior within a group or society.