An intertemporal budget constraint
A) requires an endowment point.
B) requires time to remain constant.
C) has no endowment point.
D) requires time to move in a loop.

Question

Quizplus · Accepted Answer

An intertemporal budget constraint presupposes an endowment point, where the individual has assets to allocate over time. Without an endowment point, there would be no resources or assets to allocate over time, making an intertemporal budget constraint meaningless.

An Intertemporal Budget Constraint