Suppose that an individual obtains the same utility from a given level of consumption regardless of whether it is consumed now or next period. Suppose also that the marginal utility of consumption is...

Suppose that an individual obtains the same utility

from a given level of consumption regardless of

whether it is consumed now or next period. Suppose also that the marginal utility of consumption

is diminishing. Why would you expect this person

to be ‘‘impatient,’’ that is, always choosing C0 to be

greater than C1? (Hint: What is the relative ‘‘price’’

of C1 in terms of C0?)