Econ Micro (book Only)
Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
Question
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Chapter 13, Problem 1P

A

To determine

The blank when the current consumption is more than the future consumption.

A

Expert Solution
Check Mark

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
Check Mark

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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