The rational rule of consumption is to consume more today if the:
A) price of consumption today exceeds the dollar-plus-interest in the future.
B) marginal benefit of a dollar of consumption today is greater than (or equal to) the marginal benefit of spending a dollar plus interest in the future.
C) marginal benefit of a dollar of consumption today is less than the marginal benefit of spending a dollar plus interest in the future.
D) real interest rate in the future is expected to be higher than the real interest rate today.
Correct Answer:
Verified
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