Your lifetime utility is a function of:
A)today's consumption and future consumption.
B)future consumption.
C)today's consumption and the present value of future consumption.
D)the amount of wealth in the utility function.
E)your lifetime income.

Question

Quizplus · Accepted Answer

Lifetime utility is affected by both current consumption and future consumption, but the present value of future consumption must also be taken into consideration. Therefore, choice C, which includes both current consumption and present value of future consumption, is the best option. Choices A and B fail to consider the impact of present value of future consumption, while choices D and E are not necessarily correlated with lifetime utility.

Your Lifetime Utility Is a Function Of