mandy2485 mandy2485

07-01-2024
Business

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Explain why 1 plus the interest rate in the intertemporal choice model is analogous to the relative price ratio in the consumer choice model discussed in chapter 3.

A) The interest rate represents opportunity cost.
B) It accounts for inflation in intertemporal choices.
C) Both are measures of time value of money.
D) Intertemporal and consumer choices are unrelated.

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