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If β\beta =1 and R=0, and If You Prefer in Each

Question 47

Multiple Choice

If β\beta =1 and R=0, and if you prefer  If  \beta =1 and R=0, and if you prefer   in each period 1 and 2 rather than u(c<sub>1</sub>)  + u(c<sub>2</sub>) , then you are: A)  discounting the future. B)  risk neutral. C)  consumption smoothing. D)  satiating. E)  irrational. in each period 1 and 2 rather than u(c1) + u(c2) , then you are:


A) discounting the future.
B) risk neutral.
C) consumption smoothing.
D) satiating.
E) irrational.

Correct Answer:

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