Macro- & Monetary Economics

Prio: Normal, Part I: Neoclassical Model, Type: MC, Quiz 1

An employer offers his or her employee the option of shifting x units of income from next year to this year. Given that r > 0.

  • The employee will take the option. Current and future consumption increase.
  • The employee will take the option. Current consumption increases, but future consumption decreases.
  • The employee will take the option. Current consumption increases, future consumption stays the same.
  • The employee won't take the option.
 

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