Draw a Two Period Budget Line Where the Borrow/lending Rate $Y _ { 1 } + \frac { Y _ { 2 } } { 1 + r }$

question 21

Multiple Choice

Draw a two period budget line where the borrow/lending rate of interest,r,allows consumers to choose consumption in each of the two periods.C1 and C2 given their anticipated income on two periods,Y1 and Y2.The vertical (C2) intercept is

• A) \(Y _ { 1 } + \frac { Y _ { 2 } } { 1 + r }\)
• B) \(\frac { Y _ { 1 } } { 1 + r } + Y _ { 2 }\)
• C) \(Y _ { 1 + } Y _ { 2 } ( 1 + r )\)
• D) \(Y _ { 1 } ( 1 + r ) + Y _ { 2 }\)

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Definitions:

Sales Promotion

Marketing activities that aim to increase sales in the short-term by offering incentives or discounts to consumers or resellers.

Cost Per Contact

A metric that measures the average expense incurred by a company to make a single contact with a potential or current customer, often used in marketing and advertising.

Personal Selling

A sales method involving direct interaction between salespeople and individual customers to persuade the customer to make a purchase.

Advertising

The act of promoting products, services, or brands through various media channels to inform, attract and engage potential customers.