In the intertemporal budget constraint, $f _ { \text {future } } - f _ { \text {todoy } }$ is:
A) equal to future borrowing
B) today's saving for the future
C) equal to zero
D) the rate of return on financial wealth
E) future savings

Question

Quizplus · Accepted Answer

The term $f _ { \text {future } } - f _ { \text {today } }$ represents the difference between future and present financial wealth, which corresponds to today's saving for the future.

In the Intertemporal Budget Constraint ffuture −ftodoy f _ { \text {future } } - f _ { \text {todoy } }ffuture ​−ftodoy ​

In the Intertemporal Budget Constraint $f _ { \text {future } } - f _ { \text {todoy } }$