Intertemporal choice requires knowledge of:
A)prices and interest rates in all future time periods.
B)the present value of future receipts and expenditures.
C)the consumer's expected lifetime income.
D)prices and interest rates in selected future time periods.

Question

Quizplus · Accepted Answer

Intertemporal choice involves making decisions about allocating resources across different time periods. To make such decisions, one needs to have an idea of the present value of future receipts and expenditures. While knowledge of prices and interest rates in future time periods may be helpful, it is not necessary for making intertemporal choices. The consumer's expected lifetime income may also be a consideration, but it is not the primary factor in intertemporal choice.

Intertemporal Choice Requires Knowledge Of