Fill in the blanks with "Present Value" since it is the budget constraint that shows the tradeoff between present and future consumption.
Here's the explanation for present value budget constraint:
- The relevant budget restriction when consumers make consumption decisions that cover more than one period.
- It is often referred to as the life-time budget limitation.
- Individuals can borrow and lend any amount at the market interest rate, according to the rules.
The expected utility framework, which illustrates how individuals might optimize their needs, is the budget constraint. Additionally, it shows all possible combinations of products and services that a consumer can spend.
For pictorial simplicity, economists only address two products at a time, despite the fact that there are many different goods and services available.
You might want to know why individuals make choices that are directly on the budget constraint: https://brainly.com/question/11997164
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