Other things remaining the same,in the intertemporal consumer choice model a change in the endowment point:
A)produces a parallel shift in the consumer's budget line.
B)alters the relative cost of future and present consumption.
C)pivots the budget line.
D)reduces the cost of current consumption.

Question

Quizplus · Accepted Answer

A change in the endowment point alters the relative cost of future and present consumption, which in turn produces a parallel shift in the consumer's budget line.

Other Things Remaining the Same,in the Intertemporal Consumer Choice Model