Multiple Choice
Hector's wealth is zero,he expects to work for another 45 years at a constant salary of ?$80 000 and live for another 60 years.If yearly taxes are $20 000 and Hector completely smooths consumption over his lifetime,his annual consumption is
A) $37 500.
B) $45 000.
C) $60 000.
D) $70 000.
Correct Answer:
Verified
Correct Answer:
Verified
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