A borrowing constraint that is not binding occurs when a consumer wants to consume ______ in period one than he or she earns in period(s) _____.
A) less; one
B) more; one
C) less; one and two
D) more; one and two

Question

Quizplus · Accepted Answer

If a consumer wants to consume less in period one than he or she earns in period one or two, then the borrowing constraint is not binding. Therefore, choice A is the correct answer.

A Borrowing Constraint That Is Not Binding Occurs When a Consumer