People engage in intertemporal substitution because they I. wish to reduce the overall number of hours they work. II. seek to maximize their well-being. III. are irrational.

Question

Quizplus · Accepted Answer

Intertemporal substitution refers to the idea that people choose when to work more or less based on changes in wages or other economic conditions to maximize their well-being, not because they are irrational or necessarily want to reduce their overall working hours.

People Engage in Intertemporal Substitution Because They I