Suppose that Molly had an income of $400 in period 1 and an income of $690 in period 2.Suppose that her utility function were ca1c1-a2, where a = 0.80 and the interest rate were 15%.If her income in period 1 doubled and her income in period 2 stayed the same, her consumption in period 1 would

A) stay constant. B) increase by $320. C) increase by $160. D) double. E) increase by $400. A) stay constant. B) increase by $320. C) increase by $160. D) double. E) increase by $400.

Exam 9: Intertemporal Choice-Part B

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Patience has a utility function U(c₁, c₂)= c^1/2₁ +.087c^1/2₂, where c₁ is her consumption in period 1 and c₂ is her consumption in period 2.Her income in period 1 is 2 times as large as her income in period 2.At what interest rate will she choose to consume the same amount in period 1 as in period 2?

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Question 1

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Harvey Habit has a utility function U(c₁, c₂)= min{c₁, c₂}.If he had an income of $430 in period 1 and $860 in period 2 and if the interest rate were 15%, how much would Harvey choose to spend on bread in period 1?

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Question 2

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If Peregrine consumes (1, 500, 880)and earns (1, 300, 1, 100)and if the interest rate is 10%, the present value of his endowment is

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Question 3

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Let i be the rate of inflation and r the nominal interest rate.(We use pi to denote the rate of inflation in the book.)The (exact)real rate of interest is given by

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Question 4

If Peregrine consumes (900, 805)and earns (600, 1, 150)and if the interest rate is 15%, the present value of his endowment is

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Question 5

If Peregrine consumes (1, 400, 1, 440)and earns (900, 2, 040)and if the interest rate is 20%, the present value of his endowment is

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Question 6

Patience has a utility function U(c₁, c₂)=c^1/2₁ +.080c^1/2₂, where c₁ is her consumption in period 1 and c₂ is her consumption in period 2.Her income in period 1 is 3 times as large as her income in period 2.At what interest rate will she choose to consume the same amount in period 1 as in period 2?

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Question 7

If Peregrine consumes (1, 500, 1, 080)and earns (1, 000, 1, 680)and if the interest rate is 20%, the present value of his endowment is

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Question 8

Mr.O.B.Kandle has a utility function c₁c₂, where c₁ is his consumption in period 1 and c₂ is his consumption in period 2.He has no income in period 2.If he had an income of $70,000 in period 1 and the interest rate increased from 10 to 16%,

(Multiple Choice)

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Question 9

Mr.O.B.Kandle has a utility function c₁c₂, where c₁ is his consumption in period 1 and c₂ is his consumption in period 2.He has no income in period 2.If he had an income of $50,000 in period 1 and the interest rate increased from 10 to 15%,

(Multiple Choice)

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Question 10

Patience has a utility function U(c₁, c₂)=c^1/2₁ + .087c^1/2₂, where c₁ is her consumption in period 1 and c₂ is her consumption in period 2.Her income in period 1 is 5 times as large as her income in period 2.At what interest rate will she choose to consume the same amount in period 1 as in period 2?

(Multiple Choice)

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Question 11

Patience has a utility function U(c₁, c₂)= c^1/2₁ + .083c^1/2₂, where c₁ is her consumption in period 1 and c₂ is her consumption in period 2.Her income in period 1 is 5 times as large as her income in period 2.At what interest rate will she choose to consume the same amount in period 1 as in period 2?

(Multiple Choice)

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Question 12

Harvey Habit has a utility function U(c₁, c₂)= min{c₁, c₂}.If he had an income of $440 in period 1 and $880 in period 2 and if the interest rate were 20%, how much would Harvey choose to spend on bread in period 1?

(Multiple Choice)

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Question 13

Mr.O.B.Kandle has a utility function c₁c₂, where c₁ is his consumption in period 1 and c₂ is his consumption in period 2.He has no income in period 2.If he had an income of $40,000 in period 1 and the interest rate increased from 10 to 12%,

(Multiple Choice)

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Question 14

In the village, if the harvest this year is 4,000 bushels of grain and the harvest next year will be 700 bushels and if rats eat 30% of any grain that is stored for a year, how many bushels of grain could the villagers consume next year if they consume 1,000 bushels of grain this year?

(Multiple Choice)

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Question 15

Mr.O.B.Kandle, has a utility function c₁c₂, where c₁ is his consumption in period 1 and c₂ is his consumption in period 2.He has no income in period 2.If he had an income of $60,000 in period 1 and the interest rate increased from 10 to 17%,

(Multiple Choice)

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Question 16

Mr.O.B.Kandle has a utility function c₁c₂, where c₁ is his consumption in period 1 and c₂ is his consumption in period 2.He has no income in period 2.If he had an income of $40,000 in period 1 and the interest rate increased from 10 to 19%,

(Multiple Choice)

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Question 17

Suppose that Molly had an income of $400 in period 1 and an income of $690 in period 2.Suppose that her utility function were c^a₁c¹^-^a₂, where a = 0.80 and the interest rate were 15%.If her income in period 1 doubled and her income in period 2 stayed the same, her consumption in period 1 would

(Multiple Choice)

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Question 18

In the village, if the harvest this year is 6,000 bushels of grain and the harvest next year will be 1,100 bushels and if rats eat 10% of any grain that is stored for a year, how many bushels of grain could the villagers consume next year if they consume 1,000 bushels of grain this year?

(Multiple Choice)

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Question 19

In the village , if the harvest this year is 4,000 bushels of grain and the harvest next year will be 1,200 bushels and if rats eat 10% of any grain that is stored for a year, how many bushels of grain could the villagers consume next year if they consume 1,000 bushels of grain this year?

(Multiple Choice)

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Question 20

Showing 1 - 20 of 31

Exam 9: Intertemporal Choice-Part B

Harvey Habit has a utility function U(c1, c2)= min{c1, c2}.If he had an income of $430 in period 1 and $860 in period 2 and if the interest rate were 15%, how much would Harvey choose to spend on bread in period 1?

If Peregrine consumes (1, 500, 880)and earns (1, 300, 1, 100)and if the interest rate is 10%, the present value of his endowment is

Let i be the rate of inflation and r the nominal interest rate.(We use pi to denote the rate of inflation in the book.)The (exact)real rate of interest is given by

If Peregrine consumes (900, 805)and earns (600, 1, 150)and if the interest rate is 15%, the present value of his endowment is

If Peregrine consumes (1, 400, 1, 440)and earns (900, 2, 040)and if the interest rate is 20%, the present value of his endowment is

Patience has a utility function U(c1, c2)=c1/21 +.080c1/22, where c1 is her consumption in period 1 and c2 is her consumption in period 2.Her income in period 1 is 3 times as large as her income in period 2.At what interest rate will she choose to consume the same amount in period 1 as in period 2?

If Peregrine consumes (1, 500, 1, 080)and earns (1, 000, 1, 680)and if the interest rate is 20%, the present value of his endowment is

Mr.O.B.Kandle has a utility function c1c2, where c1 is his consumption in period 1 and c2 is his consumption in period 2.He has no income in period 2.If he had an income of $70,000 in period 1 and the interest rate increased from 10 to 16%,

Mr.O.B.Kandle has a utility function c1c2, where c1 is his consumption in period 1 and c2 is his consumption in period 2.He has no income in period 2.If he had an income of $50,000 in period 1 and the interest rate increased from 10 to 15%,

Harvey Habit has a utility function U(c1, c2)= min{c1, c2}.If he had an income of $440 in period 1 and $880 in period 2 and if the interest rate were 20%, how much would Harvey choose to spend on bread in period 1?

Mr.O.B.Kandle has a utility function c1c2, where c1 is his consumption in period 1 and c2 is his consumption in period 2.He has no income in period 2.If he had an income of $40,000 in period 1 and the interest rate increased from 10 to 12%,

In the village, if the harvest this year is 4,000 bushels of grain and the harvest next year will be 700 bushels and if rats eat 30% of any grain that is stored for a year, how many bushels of grain could the villagers consume next year if they consume 1,000 bushels of grain this year?

Mr.O.B.Kandle, has a utility function c1c2, where c1 is his consumption in period 1 and c2 is his consumption in period 2.He has no income in period 2.If he had an income of $60,000 in period 1 and the interest rate increased from 10 to 17%,

Mr.O.B.Kandle has a utility function c1c2, where c1 is his consumption in period 1 and c2 is his consumption in period 2.He has no income in period 2.If he had an income of $40,000 in period 1 and the interest rate increased from 10 to 19%,

Suppose that Molly had an income of $400 in period 1 and an income of $690 in period 2.Suppose that her utility function were ca1c1-a2, where a = 0.80 and the interest rate were 15%.If her income in period 1 doubled and her income in period 2 stayed the same, her consumption in period 1 would

In the village, if the harvest this year is 6,000 bushels of grain and the harvest next year will be 1,100 bushels and if rats eat 10% of any grain that is stored for a year, how many bushels of grain could the villagers consume next year if they consume 1,000 bushels of grain this year?

In the village , if the harvest this year is 4,000 bushels of grain and the harvest next year will be 1,200 bushels and if rats eat 10% of any grain that is stored for a year, how many bushels of grain could the villagers consume next year if they consume 1,000 bushels of grain this year?

Budget Constraint-Part A

Budget Constraint-Part B

Preferences-Part A

Preferences-Part B

Utility-Part A

Utility-Part B

Choice-Part A

Choice-Part B

Demand-Part A

Demand-Part B

Revealed Preference-Part A

Revealed Preference-Part B

Slutsky Equation-Part A

Slutsky Equation-Part B

Buying and Selling-Part A

Buying and Selling-Part B

Intertemporal Choice-Part A

Asset Markets-Part A

Asset Markets-Part B

Uncertainty-Part A

Uncertainty-Part B

Risky Assets-Part A

Risky Assets-Part B

Consumers Surplus-Part A

Consumers Surplus-Part B

Market Demand-Part A

Market Demand-Part B

Equilibrium-Part A

Equilibrium-Part B

Auctions-Part A

Auctions-Part B

Technology-Part A

Technology-Part B

Profit Maximization-Part A

Profit Maximization-Part B

Cost Minimization-Part A

Cost Minimization-Part B

Cost Curves-Part A

Cost Curves-Part B

Firm Supply-Part A

Firm Supply-Part B

Industry Supply-Part A

Industry Supply-Part B

Monopoly-Part A

Monopoly-Part B

Monopoly Behavior-Part A

Monopoly Behavior-Part B

Factor Markets-Part A

Factor Markets-Part B

Oligopoly-Part A

Oligopoly-Part B

Game Theory-Part A

Game Theory-Part B

Game Applications-Part A

Game Applications-Part B

Behavioral Economics

Exchange-Part A

Exchange-Part B

Production-Part A

Production-Part B

Welfare-Part A

Welfare-Part B

Harvey Habit has a utility function U(c₁, c₂)= min{c₁, c₂}.If he had an income of $430 in period 1 and $860 in period 2 and if the interest rate were 15%, how much would Harvey choose to spend on bread in period 1?

Mr.O.B.Kandle has a utility function c₁c₂, where c₁ is his consumption in period 1 and c₂ is his consumption in period 2.He has no income in period 2.If he had an income of $70,000 in period 1 and the interest rate increased from 10 to 16%,

Mr.O.B.Kandle has a utility function c₁c₂, where c₁ is his consumption in period 1 and c₂ is his consumption in period 2.He has no income in period 2.If he had an income of $50,000 in period 1 and the interest rate increased from 10 to 15%,

Harvey Habit has a utility function U(c₁, c₂)= min{c₁, c₂}.If he had an income of $440 in period 1 and $880 in period 2 and if the interest rate were 20%, how much would Harvey choose to spend on bread in period 1?

Mr.O.B.Kandle has a utility function c₁c₂, where c₁ is his consumption in period 1 and c₂ is his consumption in period 2.He has no income in period 2.If he had an income of $40,000 in period 1 and the interest rate increased from 10 to 12%,

Mr.O.B.Kandle, has a utility function c₁c₂, where c₁ is his consumption in period 1 and c₂ is his consumption in period 2.He has no income in period 2.If he had an income of $60,000 in period 1 and the interest rate increased from 10 to 17%,

Mr.O.B.Kandle has a utility function c₁c₂, where c₁ is his consumption in period 1 and c₂ is his consumption in period 2.He has no income in period 2.If he had an income of $40,000 in period 1 and the interest rate increased from 10 to 19%,