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
Do you think that public administrators should be restricted to only laid down rules in the discharge of their duties as espoused by Max Weber or should they have some amount of di

Determinants of balance of payments: Broadly speaking, trend behaviour of merchandise exports and imports along with their  terms of  trade,  net invisible earnings and autono

Typical start-up businesses' estimated profit are forecasted as following: State Bad Good Probability 81% 21%

please,how do i relate keynesian theories on fiscal policy to the topic"impact of oil revenue on agricultural productivity?

You have been invited by world leaders to be part of a team of international economists selected to make recommendations on how the international community might work together more

Demand: Demand is quantity of a good buyer who wishes to purchase at each conceivable price. The law of demand explains us that if the price of certain commodity increases,

What is the meaning of Deindustrialisation Deindustrialisation or structural decline of many manufacturing industries along with activities like coal mining is associated with

Read "How Did Economists Get It So Wrong" by Paul Krugman and second, the blog "History of Economics Playground", by Pedro Duarte, Tiago Mata, Clement Levallois, Yann Grd...etc., t

Question 3 (44 marks) Please note that this question requires substantial research. A summary from the text book is not sufficient. To score well you will have to consult several a

A design-build-operate engineering company burrowed $6 million for 3 years so that in can purchase new equipment. The interest is compounded and the total amount owed will be paid