In the text, $u ^ { \prime } \left( c _ { \text {todoy } } \right)$ is ________ and $\beta u ^ { \prime } \left( c _ { \text {future } } \right)$ Is ________.
A) the discounted marginal utility of today's consumption; the marginal utility of future consumption
B) today's total welfare; the future's total welfare
C) total utility of today's consumption; the discounted total utility of today's consumption
D) the marginal utility of today's consumption; the discounted marginal utility of future consumption
E) the marginal utility of today's consumption; the marginal utility of future consumption

Question

Quizplus · Accepted Answer

The expression $u ^ { \prime } \left( c _ { \text {today } } \right)$ represents the marginal utility of today's consumption, while $\beta u ^ { \prime } \left( c _ { \text {future } } \right)$ represents the discounted marginal utility of future consumption, where $\beta$ is the discount factor.

In the Text u′(ctodoy )u ^ { \prime } \left( c _ { \text {todoy } } \right)u′(ctodoy ​)

In the Text $u ^ { \prime } \left( c _ { \text {todoy } } \right)$