Which of the Following Is the Correct Statement of an Intertemporal

question 78

Multiple Choice

Which of the following is the correct statement of an intertemporal budget constraint?

• A) C1 = (1 + r)(W + Y1) - C2 + Y2
• B) C2 = (1 + r)(W + Y1 - C1) + Y2
• C) W = (1 + r)(Y1 + Y2) - (C1 + C2)
• D) Y2 = (1 + r)(W + Y1 - C1)

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