An Intertemporal Budget Constraint Is Downward Sloping Due to ________

question 38

Multiple Choice

An intertemporal budget constraint is downward sloping due to ________.

• A)the trade-off between current and future consumption
• B)the law of diminishing marginal productivity
• C)the law of supply
• D)the law of demand

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Definitions:

Negotiable Instrument

A written promise or order to pay a specific amount of money, easily transferable from one party to another.

Face Value

The nominal or original value stated on a financial instrument, such as a bond or currency bill, not necessarily its current market value.

Possession

The state of having, owning, or controlling something, either tangibly or legally.

Holder In Due Course

A legal term for a person who has obtained a negotiable instrument in good faith and for value, and thus has certain rights above the original payee.