Consumption-savings decisions involve intertemporal choice as this is a decision involving a tradeoff between
A) consumption and investment.
B) consumption and saving.
C) current and future investment.
D) current and future consumption.
E) consumption per worker and income per worker.

Question

Quizplus · Accepted Answer

Consumption-savings decisions involve choosing whether to spend money now (current consumption) or save it for later (future consumption). It is a tradeoff between current and future consumption. Therefore, the correct choice is D, current and future consumption.

Consumption-Savings Decisions Involve Intertemporal Choice as This Is a Decision