Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
1) Assume that a household is choosing how to allocate their income (Y) over the next two years for consumption (C). Assume that Y 2016 = $100,000 and Y2017 = $0 meaning they are going to retire at the beginning of 2017, except to die at the end of 2017 and wish to leave nothing for their rotten kids. Initally the interest rate (i) for both borrowing and lending is 10%.
A) Please construct the budget line with Y and C for this year 2016 on the horizontal axis and Y and C for 2017 on the vertical.
B) Please write the equation for the budget constraint in slope/intercept form.
C) What is the rate that the financial market place requires the household to exchange a dollar’s worth of consumption this year for a dollar in 2017?
D) Assume the household chooses C2017 (next year’s consumption) to be $40,000. How much can the household consume and save in 2016 as a result of this decision?
E) Assume the Federal Reserve lowers interest rates such that the rate indicated above falls from 10% to 5%. But the household insists that it wants consumption in 2017 to remain at $40,000. Please show this change in the budget constraint and determine how much consumption and savings in 2016 can be for the household to achieve its consumption goal C2017 = $40,000 for 2017.
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..
Explain each of the following using supply and demand diagrams, With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.
The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.
Draw the production possibility curve and a. Define consumer surplus and producer surplus.
The Australian government administers two programs that affect the market for cigarettes
How many tickets to sell to maximize total welfare.
The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled
Depict the von Neumann-Morgenstern utility index u in a diagram
What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution
Calculate gross national product and net national product
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd