Which Statement About the Standard Intertemporal Choice Model Is TRUE

question 29

Multiple Choice

Which statement about the standard intertemporal choice model is TRUE?

• A) People save in order to smooth consumption over time.
• B) People gain utility directly by working.
• C) For most people,it is optimal to set consumption equal to income each year.
• D) A dollar to be received in 10 years is worth the same amount as a dollar received today.

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Definitions:

Transversus Abdominis

A muscle layer of the anterior and lateral abdominal wall which is deep to (layered below) the internal oblique muscle.

External Abdominal Oblique

A large muscle on the outer surface of the lower abdomen that functions in rotating and bending the body.

Levator Scapulae

A muscle in the back that elevates the scapula (shoulder blade).

Scapula

The shoulder blade, a large, flat, triangular bone situated on the posterior of the shoulder, connecting the humerus (upper arm bone) with the clavicle (collar bone).