Anna cares about her present and future consumption. Anna prefers consumption plan A to consumption plan Bif and only if plan A provides Anna with a larger lifetime (aggregate) consumption than plan B: a. If the interest rate is positive, Anna will save all her present income b.Anna neither saves nor borrows, for any interest rate C.if the interest rate is positive, an increase in the interest rate will increase Anna's present consumption d. Present and future consumption are perfect complements for Anna e.If the interest rate is positive, an increase in the interest rate will increase Anna's savings

Anna cares about her present and future consumption. Anna prefers consumption plan A to consumption plan Bif and only if plan A provides Anna with a larger lifetime (aggregate) consumption than plan B: a. If the interest rate is positive, Anna will save all her present income b.Anna neither saves nor borrows, for any interest rate C.if the interest rate is positive, an increase in the interest rate will increase Anna's present consumption d. Present and future consumption are perfect complements for Anna e.If the interest rate is positive, an increase in the interest rate will increase Anna's savings

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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