If $c _ { \text {future } } > c _ { \text {today } }$

question 32

Multiple Choice

If $c _ { \text {future } } > c _ { \text {today } }$ , then:

• A) \(\beta ( 1 + R ) < 1\) and consumption shrinks
• B) \(\beta ( 1 + R ) > 1\) and consumption grows
• C) \(\beta < 0 < ( 1 + R )\) and you decide to save
• D) \(y _ { \text {today } } < y _ { \text {future } }\) , because you make higher income in the future
• E) \(\bar { X } = 0\) , because you have drawn your savings down to zero

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