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!
A consumer's income in the current period is y=60, and income in the future period is y=100. He pays lump-sum taxes of T=20 in the current period and T'=20 in the future period. His utility function is u(c,c' )=logc+βlogc'. For simplicity, β=1 and the real interest rate is r=0.
a. Set up and solve the consumer's problem and find optimal c and c', assuming that the consumer is not credit constrained, i.e. he can borrow or save as much as he wants in the current period: what are the expressions and numerical values for consumption today, savings today and consumption tomorrow?
b. Suppose that government decides to give a tax cut on current taxes so that T decreases to 15
and T' increases to 25. Redo the computation in part (a). Do optimal c and c' change? Explain why or why not with reference to Ricardian Equivalence.
c. Now suppose that consumers are credit constrained so that they can save as much as they want in the current period but are unable to borrow at all (we must satisfy s>=0). Redo parts (a) and (b). Are optimal c and c' different? Explain why or why not with reference to Ricardian Equivalence.
Harris claims that K & G defaulted first, having no legal right to refuse the August progress payment. Did K & G default first? Explain.
If you were sitting on the President's council for probation and parole reform, what four (4) recommendations would you make to increase the success of probation and parole in the United States? Give your rational for each recommendation.
By prior agreement, the company will skip the coupon payments in years 6, 7, and 8, (6 payments in total; the payments at time 6 through to 8.5). These payments will be repaid, without interest, at maturity. What is the corporate bond's value?
Topic: How Can Socialization and Mentoring Be Used for Career Advancement
Please answer throughly is no less then 100 words. fractional expressions with common denominator: When the denominators are the same, one will add the numerators and keep the denominator.
Why is it important that faculty comply with the University's Accessibility Guidelines? When linking to a video, what should a faculty member do to ensure the video is accessible?
In what ways can servant leadership be considered a vocation? When people commit to being servant leaders, what does that mean about the types of behaviors they exhibit and prohibit personally and within the organizations they are leading?
Randy Smith bought 180 shares of a mutual fund with a NAV of $14.85. This fund has a load charge of 6%. What is the offer price?A)$17.54B)$15.47C)$15.74D)$17.45
Determine the impact of the company's mission, vision, and primary stakeholders on its overall success. Analyze the five (5) forces of competition to determine how they impact the company. Create a SWOT analysis for the company to determine its major..
1. Determine the order-winning and qualifying criteria for the product. 2. Select the store chains that would sell the products. 3. Determine the total number of units sold per week by the store chains
Do you think it is because they lack the time or budget to go more in-depth in their review? Or is it perhaps due to a lack of experience in the particular company or industry being audited?
What is needed to make this( High school ticket and concession stand) project functional in terms of equipment, computers, cash registers, and so forth? What functionality must it have? In our example, there would be specific types of hardware requir..
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