A household has $5 in wealth and faces a MB of consumption of $1.66, 1.44, 1.31, 1.22 and 1.18 for 1st, 2nd... unit of consumption C, respectively. If the interest rate is 20%, then what is the household's optimal savings S"? O $1 O $2 O $3 O $4
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- Af a family's MPS is 0.2. it means that the family is: O a. Saving $0.2 O6 Saving 20 percent of its income Oc Consuming 80 percent of its income O d. Saving 20 percent of any additional income3rian earns income equal to $82,000 in the first period, but his income will drop to $19,170 in the second period. a Sketch his intertemporal budget constraint, ansuming a 6.5% interest rate. Add an indifference curve that assumes he optimally chooses to save $40,000 in the first period. Be sure to CLEARLY graph your answer, with labeln on the axes and any other important points. Also show work for any calculations done. b. Show the offect of a 50% tax on interest income, assuming the substitution and income effects cancel each other out. Again, be sure to clearly graph your answer and show work for any calculations done.Jien is just bored all the time; no amount of success makes him happy, it seems. Below is a list of his income for the last several years and the utility he experienced per dollar of income: Year Yearly Income Utility per Dollar Earned 2017 $60,000 2 utils 2018 $70,000 1.8 2019 $100,000 1.5 2020 $120,000 1 2021 $145,000 0.40 From the above, we can say that Jien most likely is different from most people economists study in terms of risk attitudes is "risk loving" will not take a fair bet has a utility of wealth curve that is a straight line
- A real estate company expects to earn $100M on a project they plan to invest in, if the company decides to invest a quarter of that sum now, how much will they have earned in 18 periods at a rate of 9%? O a. 118 million O b. 471 million О с. 100 million O d. 443 million1. Complete the following table and answer the questions below: Units consumed Total utility Marginal utility 1 10 10 2 8. 25 4 30 5 6. 34 2. Columns 1 through 4 in the table below show the marginal utility, measured in utils, that Ricardo would get by purchasing various amounts of products A, B, C, and D. Column 5 shows the marginal utility Ricardo gets from saving. Assume that the prices of A, B, C, and D are P18, 6, 4, and 24, respectively, and that Ricardo has an income of 106. Column 1 Column 2 Column 3 Column 4 Column 5 Unit Unit Unit Unit No. of MU MU MU MU P saved MU of A of B of C of D || || || || | 1 72 1 24 1 15 1 36 1 2 54 2 15 12 2 30 2 3 45 3 12 8 3 24 3 36 4 18 2 27 5 7 5 13 5 1 18 6. 7 6. 1/2 7 15 7 7 3.5 7 4 7 1/4 8 12 8. 1 8 2 8. 1/8 a. What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility? b. How many pesos will Ricardo choose to save?6. A person can minimize their by investing in a broad range of investments.
- MN 00 CO IN %24 Question 25 of 60 > (Table) Based on the table, assume that a bag of chips costs $3. The marginal utility per dollar for the first bag of chips is Bottled Water Bags of Chips Quantity Total Utility Quantity Total Utility 1. 1. 09 06 105 2. 3. 06 4. 114 4. 90. 120 O 10. O 20. O 15. 10:07 PM 75°F ENG 12/12/2021 dp f12 prt sc delete home 61 pua f4 144 I14 backspace -> wnu lock 7. 6 5. 9. 4. L home D. enter K. pause ↑ shiftQuestion 6 What is the present worth of 5 payments of $700 if the interest rate is 5% and the first payment occurs now? O a. S3,333 O b. $3030.65 O. 53,182.20 O d. S3500 MorozYou are working as an investment consultant in a firm. You have been provided data for the past 7 years in the Table 4 as follows: Table 4: Investment Data Yr. Investment (Rs. Millions) Returns (Rs. Millions) 1 185 17 2 128 37 3 75 63 4 98 54 5 155 36 6 63 72 7 112 36 Assume your client plans to investment 30 million rupees. Based on this data will you recommend your client to invest. Why or why not? Your recommendations must be supported by complete workings including model(s), relationships between variables (correlations, coefficient of determinations) and graphical visualizations (such as scatter charts).
- 6. What is present worth.?Investors sometimes fear that a high-risk investment is especially likely to have low returns. Is this fear true? Does a high risk mean the return must be low?b. x= y2 - 4 3. P5-4-3-2-1 2. 3 el S 6 3) 1) Function? YES or NO Domain , Range thani you-Zoom Quiz Module 8 Qua 3 M Please see attached Filing x document com/courses/49637/quizzes/274167/take M Gmail B Translate For the following information, how much eggs will this consumer buy? You may assume they can buy fractions of goods. They will never buy more than 3 of any one item. Price Candy $2, Price Milk = $1, Price Eggs $0.50, Income $6. %3D Candy Milk Eggs 1st Bag or Carton 14 18 12 2nd Bag or Carton 10 3 2 3rd Bag or Carton 3 1 01 03 O 1.5