The Keynesian Consumption Function and the Theory of Intertemporal Choice

question 39

Multiple Choice

The Keynesian consumption function and the theory of intertemporal choice are consistent for households ________.

• A)with a binding budget constraint
• B)with little or no initial wealth
• C)whose consumption remains positive,even if income is zero
• D)whose consumption cannot exceed current income

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Definitions:

Impulsiveness

The tendency to act on a whim, displaying behavior characterized by little or no forethought, reflection, or consideration of the consequences.

Big Five

A model describing human personality traits in five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Extraverted

A personality trait typified by an outgoing, sociable, and energetic disposition, often seeking stimulation and company.

Alcohol Problem

A condition where the consumption of alcohol causes harm to an individual's health, interpersonal relationships, or ability to work.