MrOBKandle Has a Utility Function C₁c₂, Where C₁ Is

question 14

Multiple Choice

Mr.O.B.Kandle has a utility function c₁c₂, where c₁ is his consumption in period 1 and c₂ is his consumption in period 2.He has no income in period 2.If he had an income of $40,000 in period 1 and the interest rate increased from 10 to 12%,

• A)his consumption in both periods would increase.
• B)his savings would increase by 2% and his consumption in period 2 would also increase.
• C)his consumption in both periods would decrease.
• D)his savings would not change but his consumption in period 2 would increase by 400.
• E)his consumption in period 1 would decrease by 12% and his consumption in period 2 would also decrease.

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Definitions:

Psychologists

Professionals who study cognitive, emotional, and social processes and behavior by observing, interpreting, and recording how individuals relate to one another and their environments.

Amino Acids

Organic compounds that combine to form proteins, serving as the building blocks of life.

DNA Code

The sequence of nucleotides in DNA that determines the genetic information carried by an organism.

Synthesis

The combination of ideas, information, or data to form a coherent whole or to derive new insights.