Suppose that Molly from Problem 2 had an income of $200 in period 1 and an income of $460 in period 2.Suppose that her utility function were ca1c1 - a2,where a = 0.40 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) increase by $80. B) increase by $40. C) double. D) stay constant. E) increase by $200. A) increase by $80. B) increase by $40. C) double. D) stay constant. E) increase by $200.

Mr.O.B.Kandle,of Problem 8,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%,

A) his savings would increase by 6% and his consumption in period 2 would also increase. B) his consumption in both periods would decrease. C) his savings would not change but his consumption in period 2 would increase by 2,100. D) his consumption in both periods would increase. E) his consumption in period 1 would decrease by 16% and his consumption in period 2 would also decrease. A) his savings would increase by 6% and his consumption in period 2 would also increase. B) his consumption in both periods would decrease. C) his savings would not change but his consumption in period 2 would increase by 2,100. D) his consumption in both periods would increase. E) his consumption in period 1 would decrease by 16% and his consumption in period 2 would also decrease.

Exam 10:Intertemporal Choice-Part B

Explore all topics

Suppose that Molly from Problem 2 had an income of $200 in period 1 and an income of $460 in period 2.Suppose that her utility function were c^a₁c¹ ^- ^a₂,where a = 0.40 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)

4.8/5

(33)

Question 21

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

(Multiple Choice)

4.9/5

(41)

Question 22

Harvey Habit in Problem 9 has a utility function U(c₁,c₂)=min{c₁,c₂}.If he had an income of $420 in period 1 and $1,050 in period 2 and if the interest rate were 10%,how much would Harvey choose to spend on bread in period 1?

(Multiple Choice)

4.7/5

(42)

Question 23

Harvey Habit in Problem 9 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?

(Multiple Choice)

5.0/5

(45)

Question 24

If Peregrine in Problem 1 consumes (1,400,1,210)and earns (900,1,760)and if the interest rate is 10%,the present value of his endowment is

(Multiple Choice)

4.9/5

(38)

Question 25

In the village in Problem 10,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)

4.9/5

(33)

Question 26

Harvey Habit in Problem 9 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)

4.7/5

(32)

Question 27

Mr.O.B.Kandle,of Problem 8,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)

4.8/5

(39)

Question 28

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

(Multiple Choice)

4.8/5

(33)

Question 29

In the village in Problem 10,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)

4.9/5

(37)

Question 30

Harvey Habit in Problem 9 has a utility function U(c₁,c₂)=min{c₁,c₂}.If he had an income of $1,290 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?

(Multiple Choice)

4.9/5

(40)

Question 31

Showing 21 - 31 of 31

Exam 10:Intertemporal Choice-Part B

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

Harvey Habit in Problem 9 has a utility function U(c1,c2)=min{c1,c2}.If he had an income of $420 in period 1 and $1,050 in period 2 and if the interest rate were 10%,how much would Harvey choose to spend on bread in period 1?

Harvey Habit in Problem 9 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 in Problem 1 consumes (1,400,1,210)and earns (900,1,760)and if the interest rate is 10%,the present value of his endowment is

Harvey Habit in Problem 9 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,of Problem 8,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%,

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

Harvey Habit in Problem 9 has a utility function U(c1,c2)=min{c1,c2}.If he had an income of $1,290 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?

Demand-Part A

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-Part A

Exchange-Part A

Exchange-Part B

Production-Part A

Production-Part B

Welfare-Part A

Welfare-Part B

Externalities-Part A

Externalities-Part B

Information Technology-Part A

Information Technology-Part B

Public Goods-Part A

Public Goods-Part B

Asymmetric Information-Part A

Asymmetric Information-Part B

Filters

Harvey Habit in Problem 9 has a utility function U(c₁,c₂)=min{c₁,c₂}.If he had an income of $420 in period 1 and $1,050 in period 2 and if the interest rate were 10%,how much would Harvey choose to spend on bread in period 1?

Harvey Habit in Problem 9 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?

Harvey Habit in Problem 9 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,of Problem 8,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%,

Harvey Habit in Problem 9 has a utility function U(c₁,c₂)=min{c₁,c₂}.If he had an income of $1,290 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?