The endowment point is the consumption bundle in which
A) savings are zero.
B) households maximize utility.
C) permanent income is maximized.
D) households are indifferent to interest rate changes.
E) current consumption is equal to future consumption.

Question

Quizplus · Accepted Answer

The endowment point is where savings are zero because it represents the initial allocation of resources without any borrowing or lending.

The Endowment Point Is the Consumption Bundle in Which