i am now examing

Question \#2 (8 Points): Answer: Assume that Ahmad's consumption decisions are consistent with the Live Cycle Hypothesis (LCH). In 2011, Ahmad is 25 years old, expects to earn income until he is 65 , and he expects to consume until he dies at age 90. a. If Ahmad earns 50000 per year and wishes to consume an equal amount each year. How much will he consume each year. (2 Points) b. What is Ahmad's ratio of consumption to income? What is his saving ratio? ( 2 Points)