Figure 21-16
The following figure illustrates the preferences of a representative consumer, Nathaniel.
-Refer to Figure 21-16. Interest rates increase by 4 percent. Nathaniel's optimal choice point moves from A to B. Nathaniel consumes
A)less while he is younger and saves more than he did before interest rates increased.
B)more while he is younger and saves more than he did before interest rates increased.
C)less while he is younger and saves less than he did before interest rates increased.
D)more while he is younger and saves less than he did before interest rates increased.

Question

Figure 21-16
The following figure illustrates the preferences of a representative consumer, Nathaniel. 
-Refer to Figure 21-16. Interest rates increase by 4 percent. Nathaniel's optimal choice point moves from A to B. Nathaniel consumes
A)less while he is younger and saves more than he did before interest rates increased. 
B)more while he is younger and saves more than he did before interest rates increased. 
C)less while he is younger and saves less than he did before interest rates increased. 
D)more while he is younger and saves less than he did before interest rates increased.

Quizplus · Accepted Answer

The Answer of Figure 21-16
The following figure illustrates the preferences of a representative consumer, Nathaniel. 
-Refer to Figure 21-16. Interest rates increase by 4 percent. Nathaniel's optimal choice point moves from A to B. Nathaniel consumes
A)less while he is younger and saves more than he did before interest rates increased. 
B)more while he is younger and saves more than he did before interest rates increased. 
C)less while he is younger and saves less than he did before interest rates increased. 
D)more while he is younger and saves less than he did before interest rates increased.

Figure 21-16 The Following Figure Illustrates the Preferences of a Representative Consumer