Your lifetime utility is a function of:
A) today's consumption only.
B) the present value of future consumption only.
C) today's consumption and the present value of future consumption.
D) the amount of wealth in the utility function.
E) your lifetime income.

Question

Quizplus · Accepted Answer

Lifetime utility considers both present consumption and the present value of future consumption. It is important to balance the trade-off between immediate satisfaction and long-term planning in order to maximize lifetime utility. Wealth and income may be factors that influence consumption and future consumption, but they are not the only determinants of utility.

Your Lifetime Utility Is a Function Of