The Problem the Household Must Solve Is

question 49

Multiple Choice

The problem the household must solve is:

• A)choosing period consumption to satisfy the concurrent budget constraint.
• B)choosing consumption to ensure some income is left over for future generations.
• C)satisfying the intertemporal budget constraint by finding a good source of income.
• D)making sure the household is saving at 10 percent of its income.
• E)choosing lifetime consumption which satisfies the intertemporal budget constraint.