Thes. Queston 5 pis A consumer has initial real wealth of 50, current real income of...

 

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Thes. Queston 5 pis A consumer has initial real wealth of 50, current real income of 100, and future real income of 110. The real interest rate is 10% per period. The budget line is shown in the diagram to the right Suppose that the consumer's goal is to smooth consumption completely. That is, she wants to have the same level of consumption in both the current and the future period Using the point drawing tool, identify the appropriate combination of current and future consumption Carefully follow the instructions above, and only draw the required object How much will the consumer save and consume in the current period? (round to the nearest whole number) Click the graph, choose a tool in the palette and follow the instructions to create your graph re to search 19 C C 5 4 ol 20 (3 complete) → Ri e 8 6 & 7 PERON BOCCA lenovo EX 300 2000- 200- 240- 220- 200 180 100 140 120 100- 10 8 00 404 20- Future Consumption ( 9 120 160 200 240 Current Consumption C This Gu 0 Budget 20 IP Thes. Queston 5 pis A consumer has initial real wealth of 50, current real income of 100, and future real income of 110. The real interest rate is 10% per period. The budget line is shown in the diagram to the right Suppose that the consumer's goal is to smooth consumption completely. That is, she wants to have the same level of consumption in both the current and the future period Using the point drawing tool, identify the appropriate combination of current and future consumption Carefully follow the instructions above, and only draw the required object How much will the consumer save and consume in the current period? (round to the nearest whole number) Click the graph, choose a tool in the palette and follow the instructions to create your graph re to search 19 C C 5 4 ol 20 (3 complete) → Ri e 8 6 & 7 PERON BOCCA lenovo EX 300 2000- 200- 240- 220- 200 180 100 140 120 100- 10 8 00 404 20- Future Consumption ( 9 120 160 200 240 Current Consumption C This Gu 0 Budget 20 IP

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The answer to the question How much the consumers save and consume in the current period is c 25 To ... View the full answer