What financial transactions does the consumer make

Assignment Help Econometrics

Reference no: EM131403059

1. Suppose interest rates are zero and the consumer's utility function can be described by u(c1, c2). y1=75, y2=125. Find the optimal consumption in each period. What financial transactions does the consumer make?

2. Suppose the consumer's utility function is as c1c2 where c2 is to the 0.6 power. If y1=2000 and y2=1296, and the interest rate is 8%, what are the optimal levels of cosumption in periods 1 and 2?

3. Show diagrammatically how an individual earning income in period 1 can provide for consumption in period 2.

Reference no: EM131403059

Questions Cloud

Three types of new products in richardson : What type of new product do you think Hololens is - is it an innovative product, a replacement product, or an imitative product? Explain your reasoning with respect to the definitions of these three types of new products in Richardson and Gosnay (..

What is the price to earnings ratio : What is the ticker symbol of the company you chose? What is the Current Stock Price? What is the Market Cap for the stock you chose? What is the Price to Earnings Ratio? What is the Dividend and Yield?

Change business practices in line : In some cases it is necessary to change business practices in line with changing customer requirements. In 500 words explain what this means and why it might be applied to a marketing team.

Responsibilities and relevant key performance indicators : Identify their goals, targets, responsibilities and relevant key performance indicators. Communicate effectively and collaborate to form a cohesive, high-performing team.

What financial transactions does the consumer make : Suppose the consumer's utility function is as c1c2 where c2 is to the 0.6 power. If y1=2000 and y2=1296, and the interest rate is 8%, what are the optimal levels of cosumption in periods 1 and 2?

Value of customer complaints to organization : 1. As a CRM representative how do you convey the value of customer complaints to your organization? Some firms believe that complaints reflect negatively on the employee, the manager or the company and therefore may discourage staff from recording..

Fit a least squares line to the data : Fit a least squares line to the data.- Plot the data and graph the least squares line as a check on your calculations.

Calculate the price of a fifteen-year annual coupon bond : Calculate the price of a 15-year 4 percent annual coupon bond. Assume the market is yielding 5 percent on similarly risky instrument. Please show your work and explain why this is a premium or a discount bond.

Problem regarding the level of sponsorship : Lastly, please comment on how effective this property is in offering the levels of sponsorships and which level of sponsorship provides the sponsors with the best value for their level of sponsorship commitment. Also, please include a link to the ..

User Account

All Pages