When we properly employ the intertemporal economic model of resource allocation, which is a choice-theory that includes intertemporal household production, intertemporal household consumption and a market interest rate, then we typically predict households tend to use-up or exhaust most of their resources in the present time period, rather than balancing current and future resource allocations.

Question

Quizplus · Accepted Answer

Proper use of the Intetemporal economic model demonstrates that households have a natural and rational market incentive to balancecurrent and future consumption to achieve maximum wealth and optimal consumer satisfaction.

When We Properly Employ the Intertemporal Economic Model of Resource