The Parameter in the Consumer's Lifetime Utility Function Represents

question 56

Multiple Choice

The parameter in the consumer's lifetime utility function represents the ________ and is ________ if utility is worth more today than in the future.

• A) weight he or she puts on the future relative to today; less than one
• B) value of future consumption; equal to one or equal to zero
• C) expected present value of lifetime wealth; unknown today
• D) rate of return to savings; equal to long-term bond yields
• E) annual income growth; equal to the average GDP growth rate

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