Intertemporal substitution means changes in purchases
A) between imports and exports.
B) across different stores.
C) through time.
D) across different goods and services.

Question

Quizplus · Accepted Answer

Intertemporal substitution refers to changes in purchases through time, such as changes in consumption behavior due to changes in income or interest rates. Choices A, B, and D are incorrect as they do not relate to intertemporal substitution.

Intertemporal Substitution Means Changes in Purchases