Consumption-savings decisions involve intertemporal choice as this is a decision involving a tradeoff between
A)current and future investment.
B)consumption and saving.
C)consumption per worker and income per worker.
D)consumption and investment.
E)current and future consumption.

Question

Quizplus · Accepted Answer

Intertemporal choice involves making a decision about how to allocate resources between current and future consumption. Therefore, the best choice is E, which directly refers to the tradeoff between current and future consumption. Choices A, B, C, and D are either too specific or too broad to correctly define intertemporal choice.

Consumption-Savings Decisions Involve Intertemporal Choice as This Is a Decision