Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 13, Problem 1P
A
To determine
The blank when the current consumption is more than the future consumption.
A
Expert Solution
Explanation of Solution
If Bryan values current consumption more than future consumption, he has a net − borrowing.
Economics Concept Introduction
Introduction:
An intertemporal choice means how the consumer chooses to consume a good in the various time periods.
Net- saver as the name suggests the consumer is saving a good in the current period in order to consume in future.
Net borrower which means the consumer chooses to consume a good in the current time period and borrow from the future with the cost of borrowing.
B
To determine
The blank with the name of the reward to household for forgoing current consumption.
B
Expert Solution
Explanation of Solution
The reward to households for foregoing current consumption is saving
Economics Concept Introduction
Introduction:
An intertemporal choice means how the consumer chooses to consume a good in the various time periods.
Net- saver as the name suggests the consumer is saving a good in the current period in order to consume in future.
Net borrower which means the consumer chooses to consume a good in the current time period and borrow from the future with the cost of borrowing.
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