Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please help asap will like urgent no time !!! 4

please help asap will like urgent no time !!! 4 A...

50.1K

Verified Solution

Question

Accounting

please help asap will like urgent no time !!! 4
image
A consumer's income in the current period is y=100, and income in the future period is y=120. He or she pays lump-sum taxes t=20 in the current period and t = 10 in tho future period. The real interest rate is 0.1, or 10%, per period. Suppose that current and future consumption are perfect complements for the consumer and that he or she always wants to have equal consumption in the current and future periods. b) What are the optimal curreni-period and future-period consumption (rounded to nearest integer)? c=c= c) Suppose the consumer gets an unexpected increase in curtent income and y=140. What will happen? A. Future consumption goes up, current consumption goes up and saving goes up. B. Future consumption goes down, current consumption goes up and saving goes down. C. Future consumption goes up, current consumption goes down and saving goes up. D. Future consumption goes up, current consumption goes up and saving goes down

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A data set about speed dating includes​ \"like\" ratings of male dates made by the female...

Statistics
Q

An industrial company claims that the mean pH level of the water in a nearby river...

Statistics
Q

Consider the missile allocation problem (MAP) with discretized time. (a) For MAP, an extreme case may...

Advance Math
Q

Find the area of the polygon with the given vertices A 2 2 B 5...

Geometry
Q

Tutorial Exercise Find the power and root if they are real numbers 3 2 25...

Basic Math
Q

Homework The recommended one serving of this c

Basic Math
Q

Evaluate the given indefinite integrals d a 1dr b 20 dys S717 C dz C...

Calculus
Q

CURRENT OBJECTIVE Use the disk method to find the volume of a solid of revolution...

Calculus
Q

Bridgeport Company and Sarasota Corporation, two corporations of roughly the same size, are...

Accounting
Q

Exercise 8.9 Estimating Inventory by the Gross Profit Method (LO8-6) When Mary Potts arrived at...

Accounting
Q

On December 1, 2025, Sheridan Distributing Company had the following account balances. During December, the...

Accounting
Q

5. (25 points) Contango Inc. expects to earn $25 million per year in a perpetuity...

Finance