The endowment point is the consumption bundle in which A) ...

[rmenurse]

The endowment point is the consumption bundle in which
 
  A) first-period consumption is equal to zero.
  B) second-period consumption is equal to zero.
  C) the consumer finds the most utility.
  D) consumption is equal to disposable income in each period.

Question 2

How might financial deepening contribute to poverty reduction?
 
  What will be an ideal response?

[brittrenee]

Answer to Question 1

D

Answer to Question 2

Though the poor are rarely primary beneficiaries of financial deepening, they do benefit from improved performance of the macroeconomy. Moreover, because financial deepening benefits new firms, especially, and all firms that rely on external funding, it strengthens economic and political elements with a strong interest in sustaining the financial development. Poverty reduction will proceed, so long as financial development contributes to economic growth, and economic growth creates expanding opportunities for people to rise out of poverty.