Answer to Question #261247 in Macroeconomics for Kukie

Question

When consumers choices are subject to an intertemporal Budget constraint, the measure of the Total reso

Answer 1

When consumer's choices are subject to an intertepmoral budget constraint, the measure of the total reso indicates how much income is available for the purpose of consumption currently and in the future.

It reflects the decision of a consumer on how much to consume now and the amount that should be saved for the future.