If you had a windfall of $5,000 in the present time period and you save some of it, you're saving behavior would likely be due to the fact that
A. your indifference curves for present and future are horizontal.
B. your marginal utility of present income falls as your income goes up.
C. the extra income changes the slope of your time preference indifference curves making then steeper.
D. your indifference curves for present and future income are vertical.
Answer: B
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