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The Optimal Trade-Off Between Current Leisure and Current Consumption Goods w1+P \frac{w}{1+P}

Question 3

Multiple Choice

The optimal trade-off between current leisure and current consumption goods is expressed as


A) MRS1,C = w1+P \frac{w}{1+P}
B) MRS1,C = w.
C) MRS1,C = w(1+R) \frac{w}{(1+R) }
D) MRS1,C = w(1+r) \frac{w}{(1+r) }
E) MRS1,C = 1+r(1+R) \frac{1+r}{(1+R) }

Correct Answer:

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