The condition MRSC,C' = 1 + r describes the representative consumer's
A) investment decision.
B) current consumption-savings decision.
C) current period work-leisure decision.
D) future period work-leisure decision.
E) future consumption-savings decision.

Question

Quizplus · Accepted Answer

The condition MRSC,C' = 1 + r represents the marginal rate of substitution between current and future consumption, which is central to the consumer's decision on how much to consume now versus save for future consumption.

The Condition MRSC,C' = 1 + R Describes the Representative