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!
Assume Elinor works in period 1 and earns an income of 100. She is retired in period 2 and lives off her savings. She can save this period 1 income or spend it on consumption. Whatever she saves in period 1 doubles in value by period 2, and she can spend this money on consumption in period 2. Assume the return on her savings is risk-free, that she spends all her money over the course of her life, and that she lives 2 periods.
a. How much will Elinor have to live on in period two if she spends NOTHING in period one?
b. Call her consumption spending in period 1 ‘N’ (for ‘Now’). Write down an equation relating her savings in period 1, ‘S’, to her income (100) and N.
c. Call Elinor’s second period consumption ‘L’ (for ‘Later’). Write down a relationship between S and L.
d. Use your results from sections a-c to write down Elinor’s 2 period budget constraint. Sketch this constraint. Put L on the vertical axis and N on the horizontal axis.
e. Assume Elinor has preferences described by the utility function U(N,L) = NL2. Find her optimal choice for N and L.
A restraint manager believes he will need all new kitchen appliances in 2 years. The cost today is $48,800 but costs are going up at 10% per year. Find the semi annual payments needed f funds earns 5% compounded semi annually. Round to the nearest do..
What are some of the key things that can shift the supply and demand of money? Explain how these shifts might happen.
A university registrar who uses her experience with university admissions along with your high school grades, application essays, letters of recommendation.
"Some people with diabetes absolutely need to take insulin on a regular basis to survive. At the same time, pharmaceutical companies that make insulin could find a lot of other ways to make some money. If the U.S. government imposes a tax on insulin ..
In times of a struggling economic situation, determine the key steps that the Federal Reserve should take to help stabilize the economy. Next, explain how your proposed steps will affect money supply, interest rates, inflation rate, aggregate demand,..
Why does the slope of the aggregate supply curve change from the short run to the long run? What are the differences between classical theory and what Keynes believed?
Calculate the marginal cost function. What is Chill man's profit-maximizing cost as well as output combination.
Imagine you are in the market for a new car, and you found a dealer you trust. Among all the models on the lot, you found a great car. After all taxes and fees are included, the final cost of the car is $24,035. The dealership offers you 0% financing..
Given a nominal interest rate of 5 percent, in which of the following cases would you earn the highest after-tax real rate of interest?
An increase in the number of buyers for LCD TV's would cause the market demand curve to. 1. shift left or right depending on whether buyers purchase more or less than existing customers 2. shift right 3. shift left. 4. stay the same because the marke..
Read "Does a stock market crash affect the economy?" (Layton et al 2012, pp. 364–5) Immediately following the attack on the US on 11 Sept 2001, the stock markets plunged and many observers expected a recession in the US (and possibly elsewhere). Q) U..
In the most recent recession of 2008 and 2009, the United States saw a declining GDP, rising unemployment, and, sometimes, deflation. Please describe these variables during the 2008 and 2009 recession and in the subsequent years. What type of fiscal ..
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