In the real intertemporal model with investment,there is intertemporal substitution with respect to
A) consumption and leisure.
B) government spending.
C) capital.
D) current consumption.

Question

Quizplus · Accepted Answer

Intertemporal substitution in the model refers to the trade-off between consumption and leisure over different time periods, as individuals decide how to allocate their time and resources optimally.

In the Real Intertemporal Model with Investment,there Is Intertemporal Substitution