If you have maximized your lifetime utility, you get which of the following?
A) $c _ { \text {today } } + c _ { \text {future } } = 1$
B) $u ^ { \prime } \left( c _ { \text {todey } } \right) = R ( 1 + \beta ) u ^ { \prime } \left( c _ { \text {future } } \right)$
C) $u ^ { \prime } \left( c _ { \text {todoy } } \right) = u ^ { \prime } \left( c _ { \text {future } } \right)$
D) $u ^ { \prime } \left( c _ { \text {todey } } \right) = \beta ( 1 + R ) u ^ { \prime } \left( c _ { \text {future } } \right)$
E) $u \left( c _ { \text {today } } \right) = \beta ( 1 + R ) u ^ { \prime } \left( c _ { \text {future } } \right)$

Question

Quizplus · Accepted Answer

The condition for maximizing lifetime utility involves the marginal utility of consumption today being equal to the discounted marginal utility of future consumption, adjusted by the interest rate. This is represented by option D.

If You Have Maximized Your Lifetime Utility, You Get Which ctoday +cfuture =1c _ { \text {today } } + c _ { \text {future } } = 1ctoday ​+cfuture ​=1

If You Have Maximized Your Lifetime Utility, You Get Which $c _ { \text {today } } + c _ { \text {future } } = 1$