Consider the household model that you have seen in class but now assume that the goal of the household is to consume twice as much in period 2 as in period 1. She earns $100 in the first period and $150 in the second period. The interest rate is 5%. What is her optimal saving in the first period?
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- Suppose an individual places his money in a bank for a year then invests in apples for a year. Suppose the bank has an annual rate of 5%, compounded continuously. During the year in which the individual's money is in the bank, the apple grows in price from $1 to $1.25. Suppose its return doubles in the second year, when the individual's money is invested in the apples. He starts the first investment period with $100. How much money does he have after two years following the investment plan given above? Group of answer choices $105.1 $124.7 $154.4 $157.7Define time preferences for consumptionSuppose that you are considering whether to enroll in a summer computer-training program that costs $3,600. If you take the program, you will have to give up $1,800 of earnings from your summer job. You figure that the program will increase your earnings by $600 per year for each of the next 10 years. Beyond that, it is not expected to affect your earnings. Suppose the interest rate is 10% Use the preceding information to calculate the present value of the wage increase resulting from the training program. Then decide whether the investment is worthwhile, given the present value of the cost of the training program. At this interest rate, the present value of the increase in wages is about the training. Thus, from a strictly monetary viewpoint, you than the present value of the total cost of , which is participate in the training program.
- A certain quantity Q has initial value 5 and decays by 2% each day. Give an exponential function that describes this quantity. (Use t in days as your variable.)Calculate e) and f) Thank you.The table contains data on the relationship between saving and income. Rearrange these data into a meaningful order and graph them on the accompanying grid. What is the slope of the line? The vertical intercept? Write the equation that represents this line. What would you predict saving to be at the $12,500 level of income?
- In Irving Fisher’s two period model, if the consumer is initially a saver and the interestrate and the first period consumption increases, then we can conclude that the incomeeffect:a) Was greater than the substitution effectb) Was less than substitution effectc) Exact offset the substitution effectd) And the substitution effect both increased consumptionGraph the isocost function and derive the linear equation associated with it. Budget=$100O, PK=$20 each and 10$ each after 20 units purchased, PL=$10 eachSaving is setting aside money you don't spend now for emergencies or for a future purchase. In an economy the saving function is specified as S = -a + bYd. Using the above information what the effect will be on an economy if everybody in the economy saves thereby increasing the saving function?
- Please give me correct and incorrect answer explationI need some help drawing the curve for p1+p2+p3A company estimates that it will sell N(x) units of a product after spending $x thousand on advertising, as given by N(x)= -0.25x +22x³-472.5x² +83,000, where 21 ≤x≤45. When is the rate of change of sales increasing and when is it decreasing? What is the point of diminishing returns and the maximum rate of change of sales? Graph N and N' on the same coordinate system. The rate of change of sales is increasing on. (Type your answer in interval notation.) The rate of change of sales is decreasing on (Type your answer in interval notation.) The point of diminishing returns is thousand dollars. The maximum rate of change of sales is sales per thousand dollars. (Round to the nearest whole number as needed.) Graph N and N' on the same coordinate system. Choose the correct answer below. OA. Av 110000 0+ 16 N N' 50 Q Q G OB. 110000 Ay 0+ 16 N N' 50 Q Q O C. Ay Q Q MN 110000 04 16 N N' + O D. 50 110000 Ay 0+ 16 N N' X 50 Q G