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A consumers income in period 1 equals 200 in period 2 it .pdf

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A consumer's income in period 1 equals $200, in period 2 it equals $240. Taxes in period 1 equal 20 and taxes in period 2 equal 80 . Assume the consumer wishes to have equal consumption in both periods (C=C) and the real interest rate equals 10%. A) Fill in the blanks to calculate: (5 marks) Current Consumption Future consumption Savings B) Assume that current income rises to $240 and future income falls to $200. Fill in the blanks to calculate the values. ( 5 marks) Current consumption Future consumption Savings is.

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A consumer's income in period 1 equals $200, in period 2 it equals $240. Taxes in period 1 equal 20 and taxes in period 2 equal 80 . Assume the consumer wishes to have equal consumption in both periods (C=C) and the real interest rate equals 10%. A) Fill in the blanks to calculate: (5 marks) Current Consumption Future consumption Savings B) Assume that current income rises to $240 and future income falls to $200. Fill in the blanks to calculate the values. ( 5 marks) Current consumption Future consumption Savings is

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A consumers income in period 1 equals 200 in period 2 it .pdf

  • 1. A consumer's income in period 1 equals $200, in period 2 it equals $240. Taxes in period 1 equal 20 and taxes in period 2 equal 80 . Assume the consumer wishes to have equal consumption in both periods (C=C) and the real interest rate equals 10%. A) Fill in the blanks to calculate: (5 marks) Current Consumption Future consumption Savings B) Assume that current income rises to $240 and future income falls to $200. Fill in the blanks to calculate the values. ( 5 marks) Current consumption Future consumption Savings is