The answer choice which represents an equation for the intertemporal budget constraint is:
- A. (DF - QF) = (1 + r)*(Qp - Dp)
What is an Intertemporal budget constraint?
This refers to the particular constraint which is faced by a decision maker based on making a choice for time based choices.
With this in mind, we can note that the equation for the intertemporal budget constraint is option A which is A. (DF - QF) = (1 + r)*(Qp - Dp) as it shows the present discounted value which must be equal to the present discounted value.
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