In the intertemporal budget constraint, is:
A) lifetime income.
B) total lifetime wealth.
C) today's wages.
D) a household stock of bank savings.
E) future wealth.

Question

In the intertemporal budget constraint,  is:
A) lifetime income. 
B) total lifetime wealth. 
C) today's wages. 
D) a household stock of bank savings. 
E) future wealth.

Quizplus · Accepted Answer

The intertemporal budget constraint refers to the balance between current consumption and future consumption, given a stream of lifetime income and total lifetime wealth. Therefore, 11eab38d_06eb_f8c6_a5fb_115ff053b3c8_TB6622_00 represents total lifetime wealth, as it includes both current and future income and assets.

In the Intertemporal Budget Constraint, Is