MrOBKandle Has a Utility Function C₁c₂, Where C₁ Is His

question 35

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 will have no income in period 2.If he had an income of $80,000 in period 1 and the interest rate increased from 10 to 19%,

• A)his savings would increase by 9% and his consumption in period 2 would also increase.
• B)his savings would not change but his consumption in period 2 would increase by $3,600.
• C)his consumption in both periods would increase.
• D)his consumption in both periods would decrease.
• E)his consumption in period 1 would decrease by 19% and his consumption in period 2 would also decrease.

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Definitions:

Full-Fielding

A method used in electrical engineering to provide maximum voltage to a device's field winding to generate its highest possible output.

Electrical Load

A device or component that consumes electrical power, such as lights, motors, or electronic devices, within an electrical circuit.

Voltage Spikes

Sudden increases in electrical voltage within a circuit, which can potentially cause damage to electronic equipment.

Undercharging

The condition in which a battery or electronic device is not replenished with energy to its full capacity, often leading to decreased performance.