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Met's preferences over consumption is defined by the following utility function: u(c1,c2) = min[c1,2c2] . Note, c1 is Met's consumption today and c2 is Met's consumption next period.
a. Derive Met's demand for consumption today and consumption next period (let the price equal one in each period and the interest rate be 25 percent).
b. Would you describe Met's preferences by: "Live for today," or, "Save for Tomorrow"?
c. Solve for Met's optimal consumption in each period if he has 500 income that he receives each period (note: Met can borrow against his future income or save income to use in period 2).
Recently, the House of Representatives passed legislation to increase the minimum wage in the nation from $5.15 to $7.50. What are the pros and cons of this proposal? Provide an analysis based on the demand and supply of labor.
Calculate the constant debt-GDP ratio that the country can achieve if the country runs a primary budget deficit of 3%. Is this debt-GDP ratio stable.
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The Diamond Outlet has current earnings per share of $1.96 and an expected earnings growth rate of 2.2%, the required return on the stock is 13% and current book value per share is $12.70. What is the current market value of this stock?
That's constraint on or side. For Indonesian voters, are economic issues paramount in this election.
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