Problem
1. Why is a theory of consumption also a theory of saving?
2. What is the logic behind the intertemporal budget constraint? On what assumptions is it based, and how is its slope interpreted?
3. What do indifference curves show about current and future consumption? Why do they slope downward? Why are they convex?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.