Which of the following is a reason that consumption depends on current income, and not just on total wealth? A) Low income people may prefer to postpone some consumption until later years, when their incomes are higher. B) The anticipation of future financial distress makes some people reluctant to borrow. C) Banks will not always lend money to those who want to consume more than their income. D) all of the above E) none of the above

Which of the following is a reason that consumption depends on current income, and not just on total wealth? A) Low income people may prefer to postpone some consumption until later years, when their incomes are higher. B) The anticipation of future financial distress makes some people reluctant to borrow. C) Banks will not always lend money to those who want to consume more than their income. D) all of the above E) none of the above

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.2P

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