Patience Has a Utility Function 11ea6c55_6e1a_7941_9875_b321f62ddbb0_tb6162_11 , Where Cs1u1b11s1u1b0 Is

Question 53
Multiple Choice

Patience has a utility function img , where c1 is her consumption in period 1 and c2 is her consumption in period 2. Her income in period 1 is twice as large as her income in period 2. At what interest rate will she choose to consume the same amount in period 1 as in period 2? A) 0 B) 0.25 C) 0.13 D) 0.50 E) 0.38