Intertemporal substitution refers to:
A) the tendency to work more when the returns to work are higher.
B) the decision on how to allocate time between work and leisure.
C) the preference for households to smooth their consumption over time.
D) the decision to substitute one television show for another during the same time slot.

Question

Quizplus · Accepted Answer

Intertemporal substitution refers to the tendency of individuals to change their labor supply in response to changes in the wage rate, working more when wages are higher and less when they are lower.

Intertemporal Substitution Refers To