Use Figure 15

question 14

Multiple Choice

Use Figure 15.2 to answer the following questions.
-In Figure 15.2,the point c is equal to ___________ and implies __________.

• A)the utility of the average of and ;consumption smoothing
• B)the utility associated with consuming ;risk neutrality
• C)the utility of consumption;Ricardian equivalence
• D)average utility of and ;a borrowing constraint
• E)the utility of the average of and ;a low discount factor