consumption, Macroeconomics

Consider two consumers, A and B. A and B both want perfect consumption smoothing (c = cf) and both have no current wealth. However, the two consumers have different income streams. Person A’s current income, yA, = 100, and future income, yfA, = 121. Person B’s current income, yB, is 120, and future income, yfB, = is 99. The real interest rate is 10%.
Posted Date: 3/13/2013 10:52:16 PM | Location : United States

Related Discussions:- consumption, Assignment Help, Ask Question on consumption, Get Answer, Expert's Help, consumption Discussions

Write discussion on consumption
Your posts are moderated
Related Questions
Some countries that supply oil to petrol manufacturers are located in or near the Middle East, others are not located in or near the Middle East. (i) Does the war benefit or har

Members of the Organization for Economic Cooperation and Development are: 20 countries formerly signed the Convention on the Organization for Economic Co-operation and Develop

1 ) GDP Consumption 240 244 250

What is green GDP and How it is evaluated ?

A sample of 2,000 licensed drivers revealed the following number of speeding violations. 0 violations for 1,910 drivers. 1 Violations for 46 drivers. 2 violations for 18 drivers. 3

Concept of Preference, Utility Function: Concept of Preference, Utility Function and Indifference Curve  Consumer preference ('R') specified by the above axioms can be represe

The final and most important part of the methodology is the impulse response functions which will provide the most information with regards to the aim of the project. In order to a

THE MULTIPLIER ANALYSIS  Multiplier analysis explains what happens to circular flow of economic life when the behavior of one of the sectors or the components of aggregate dema