I Am Always Indifferent Between a Unit of Consumption Today

question 58

Multiple Choice

I am always indifferent between a unit of consumption today and tomorrow and the interest rate is 5%.

• A)My intertemporal indifference curve is horizontal.
• B)My intertemporal indifference curve is a straight line with slope 21.
• C)I will spend all of my current and future income on consumption today.
• D)I will spend 5% more on consumption today than on consumption tomorrow.
• E)I will spend 5% more on consumption tomorrow than on consumption today.

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Definitions:

Ekman's Idea

Refers to psychologist Paul Ekman's theory that there are six basic emotions - happiness, sadness, fear, disgust, anger, and surprise - which are universal across human cultures.

Core Affect

A fundamental psychological state underlying mood and emotions, representing the most basic feelings of pleasure or displeasure and arousal or sleepiness.

Pleasantness and Arousal

Dimensions used in emotion research, indicating respectively how positive or negative an emotion is, and how much it physiologically activates or excites an individual.

Circumplex Dimensionality

A conceptual framework for organizing interrelated variables in a circular structure, often used in personality and emotion research.