The equation MRS = 1 + r means that ________.
A)consumers prefer to avoid fluctuations in consumption
B)at the margin,consumption grows at the real interest rate
C)any movement along the budget constraint would cause a decrease in the consumer's utility
D)consumer utility is a positive function of the real interest rate

Question

Quizplus · Accepted Answer

The Answer of The equation MRS = 1 + r means that ________.
A)consumers prefer to avoid fluctuations in consumption
B)at the margin,consumption grows at the real interest rate
C)any movement along the budget constraint would cause a decrease in the consumer's utility
D)consumer utility is a positive function of the real interest rate

The Equation MRS = 1 + R Means That ________