Solved

In the Two-Period Model, Suppose a Household's Income in Period

Question 23

Multiple Choice

In the two-period model, suppose a household's income in period one is $30,000 and its income in period two is $40,000.Also assume that the household face the real interest rate of 25 percent.What is the present value of the
Household's income?​


A) ​$62,000
B) ​$46,000
C) ​$20,000
D) ​$30,000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q18: In the two-period model, suppose a household's

Q19: A disadvantage of univariate time-series models and

Q20: DSGE models that contain many different types

Q21: In the two-period model, suppose a household's

Q22: What are the advantages and disadvantages of

Q24: Which of the following is a criticism

Q25: Because RBC models are complicated, researchers generally<br>A)solve

Q26: In a two-period model, assume that there

Q27: An RBC researcher who picks a few

Q28: In the two-period model, suppose a household's