Multiple Choice
John is planning ahead for retirement in a two-period world.When John is young he will earn $1 million,and when John is old and retired he will be given $50,000 from Social Security.If the interest rate between the two time periods is 7 percent,what is the slope of John's budget constraint when considering the consumption possibilities between the two periods if "consumption when young" is graphed on the horizontal axis?
A) -0.89
B) -1.05
C) -1.07
D) -1.12
Correct Answer:
Verified
Correct Answer:
Verified
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