Afford even more consumption than at that point

Assignment Help Business Economics
Reference no: EM131088647

Suppose you have initial wealth of 1000, current income of 2000, and future income of 2750. The real interest rate is 10%. For each of the following consumption points, is the point on your budget line, outside your budget line (so you can't afford it), or inside your budget line (so you can afford even more consumption than at that point)?

a. c = 3000, cf = 2750

b. c = 2750, cf = 2750

c. c = 2750, cf = 3025

d. c = 4000, cf = 2000

e. c = 5000, cf = 500

Reference no: EM131088647

Questions Cloud

World trade organization might affect domestic policy : Explain how decisions made at the World Trade Organization might affect domestic policy. How might domestic policy affect decisions at the World Trade Organization? Finally, tell how important you think the United States’s participation in the WTO is..
Discuss the optimal pricing for the company in a case : You have the responsibility for establishing the pricing for a product to be released in three stages. A different and cheaper version of the product will be sold at the 2nd and 3rd stages. discuss the optimal pricing for the company in a case where ..
Standard theory of monopolistically competitive firms : The standard theory of monopolistically competitive firms maintains that, in the long run, such firms will operate at less than full capacity. Does this result depend on whether firms produce identical or differentiated products? Explain. What will h..
Underlying social policy is for this type of law : Many states have passed laws known as dram shop acts under which a business or an individual can be held liable for injuries caused by persons who become intoxicated from alcohol served by the business or individual. What do you think the underlying ..
Afford even more consumption than at that point : Suppose you have initial wealth of 1000, current income of 2000, and future income of 2750. The real interest rate is 10%. For each of the following consumption points, is the point on your budget line, outside your budget line (so you can't afford i..
Describe how the consumer price index : Describe how the consumer price index and the inflation rate are calculated. Why is it thought that the consumer price index, as presently calculated, overstates the rate of inflation?
Capital and financial account surplus : Suppose you had to explain to a person on the street (who is not an economist) why a current account deficit must be accompanied by a capital and financial account surplus. What would you say?
Discuss what role each component serves-why it is important : Digital technology, including new software developments is essential for many organizations to function in the modern world. Although there is a variety of technology available, there does not seem to be an industry standard. Select what you feel are..
Attempt to raise have on banking and monetary system : You are the president of a commercial bank that is also a member of the federal Reserve System, and you wnat to increase your bank's reserves. but you currently have negative excess reserves, how would you raise your bank's reserves? what effects wou..

Reviews

Write a Review

Business Economics Questions & Answers

  Your consulting firm was recently hired to improve the

Your consulting firm was recently hired to improve the performance of Shin-Soenen Inc, which is highly profitable but has been experiencing cash shortages due to its high growth rate

  Using equivalent uniform annual worth

A machine, with a first cost of $20,000, is expected to save $1,500 in the first year of operation and the savings should increase by $200 every year until (and including) the ninth year, thereafter the savings will decrease by $150 until (and includ..

  Profit-maximizing bundle will typically not exist

Elucidate how that a profit-maximizing bundle will typically not exist for a technology that exhibits increasing returns to scale

  Q1 assume anna can either wash 12 cars or wax 4 cars every

q1. assume anna can either wash 12 cars or wax 4 cars every day also bob can either wash 6 cars or wax 3 cars every

  Qread through the budget speech presented by the minister

q.read through the budget speech presented by the minister of finance on 22 february 2012. explain in detail whether

  Qqd 2000 - 25 p 2 a where p represents cost as well as a

q.qd 2000 - 25 p 2 a where p represents cost as well as a is the number of weekly advertisements. presently the

  Stabilize output-explain how you would change interest rate

If your goal is to stabilize output, explain how you would change the interest rate in response to the following events (or shocks). In each case, show the effects on the economy in the short run using the IS-MP diagram. Consumers become pessimistic ..

  Explain why measuring gdp in real terms is important

Now suppose that nominal GDP in 2003 totals $8546 billion and rises to $13.1 trillion ten years later for the United States. The GDP deflator for 2003 is 1.85 and for 2013 is 2.75, in what year is real GDP greater? By how much? How did you arrive at ..

  What is its operating cash flow

During 2010, Raines Umbrella Corp. had sales of $750,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $610,000, $125,000, and $170,000, respectively. In addition, the company had an interest expense of $60,..

  Elasticity and marginal revenue holds

Calculate the price elasticity and write it only as a function of q. Calculate the marginal revenue. Draw demand and marginal revenue together on 1 graph. Show that the expected relationship between elasticity and marginal revenue holds

  What should the manager do

the firm will earn $15,000 if it introduces the new product, and revamping the production facilities will earn new profits of $60,000. What should the manager do.

  Relationship between business operations and csr at bp

What is the relationship between business operations and CSR at BP - Does the organization consider CSR as obligatory or do they seek opportunities for CSR? In other words, is the organization reactive or proactive?

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd