If a consumer cannot borrow, then consumption in period one must be ______ income in period(s) _____.
A) less than; one
B) less than or equal to; one
C) less than; one and two
D) less than or equal to; one and two

Question

Quizplus · Accepted Answer

If a consumer cannot borrow, their consumption in period one must be less than or equal to their income in period one, as they cannot spend more than they have without borrowing.

If a Consumer Cannot Borrow, Then Consumption in Period One