For a lender in a (c,c') graph, the optimal consumption bundle is ...

[abern]

For a lender in a (c,c') graph, the optimal consumption bundle is
 
  A) to the left of the endowment point.
  B) to the right of the endowment point.
  C) on the endowment point.
  D) dependent on other factors.

Question 2

As income rises ________.
 
  A) the number of transactions households and firms undertake should increase
  B) wealth also rises
  C) demand for real money balances should increase
  D) all of the above
  E) none of the above

[izzat]

Answer to Question 1

A

Answer to Question 2

D