Which of the following is not a reason to expect the slope of a consumer's indifference curve for current and future consumption to be greater than 1 with an endowment along the 45° line?

Question

Quizplus · Accepted Answer

A decline in interest rates would reduce the opportunity cost of current consumption, making the consumer more willing to wait and consume in the future, thus decreasing the slope of their indifference curve. On the other hand, choices A, B, and C all suggest reasons why the slope might be greater than 1, as people might prioritize present consumption over future consumption due to impatience or uncertainty about the future, or value the memories of current consumption more highly.

Which of the Following Is Not a Reason to Expect