Suppose that a person lives for two periods, earning $30,000 in income in period 1, which she
Question:
a. Draw that person’s intertemporal budget constraint.
b. Draw that persons’s intertemporal budget constraint if the government taxes interest at the rate of 30%.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (10 reviews)
a The xaxis intercept is consumption out of the entire earnings of period 1 30000 The yaxis intercep...View the full answer
Answered By
Muhammad Umair
I have done job as Embedded System Engineer for just four months but after it i have decided to open my own lab and to work on projects that i can launch my own product in market. I work on different softwares like Proteus, Mikroc to program Embedded Systems. My basic work is on Embedded Systems. I have skills in Autocad, Proteus, C++, C programming and i love to share these skills to other to enhance my knowledge too.
3.50+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
Suppose that a person has a lottery ticket from which she will win X dollars, where X has the uniform distribution on the interval [0, 4]. Suppose also that the persons utility function is U(x) = x...
-
Suppose that a person won the Florida lottery and was offered a choice of two prizes: (1) $500,000 or (2) a coin-toss gamble in which he or she would get $1 million if a head were flipped and zero...
-
Suppose that a person believes that his last years weight was normally distributed with mean of 165 lb and standard deviation of 5 lb. That is, the prior pdf of is N(165, 25), or () ~ N(165, 25). He...
-
Find the critical points of the function. Then use the Second Derivative Test to determine whether they are local minima, local maxima, or saddle points (or state that the test fails). f(x, y) = x -...
-
Construct 95% Tukey confidence intervals for the three pairwise differences associated with the murder culpability scores described in Question 8.2.15.Which differences are statistically significant?
-
a. Draw the next two diagrams in the sequence. b. Copy and complete this table. c. Describe the pattern linking the number of white tiles and the number of blue tiles. d. Use your rule in part (c) to...
-
The mean room and board expense per year at four-year colleges is \($10,453\). You randomly select 9 four-year colleges. What is the probability that the mean room and board is less than \($10,750?\)...
-
Microsoft and a smaller rival often have to select from one of two competing technologies. The rival always prefers to select the same technology as Microsoft (because compatibility is important),...
-
Consider an investor who purchases a Treasury inflation-indexed note with an original principal amount of $100,000, a 6.500 percent annual coupon rate (coupon is paid semiannually), and 10 years to...
-
Inspire Inc. has a 49% ownership stake in Baldwin Industries. Crown Company has a 24% stake in Baldwin Industries. Inspire Inc. has been offered $19.6 Million for 80% of its stake. If Crown Company...
-
Fligrenias tax system has several tax brackets, ranging from a 0% marginal rate to a 50% marginal rate. The marginal tax rate paid by married couples under the current system is based on the last...
-
Suppose that the government increases its tax rate on interest earned. Afterward, savings increase. Which effect dominates, the income effect or the substitution effect? Explain.
-
What were the two ways with which Fritz tested the validity of his simulation model?
-
In the market for corn, explain why the corn price has fallen and explain how an increased subsidy influences the price and quantity of corn. In 2016, 25 percent of an estimated $55 billion farm...
-
When John Wicks opened his natural gas bill for January he was very happy. It was $147, not the usual $300 for the coldest month. Natural gas provider CenterPoint Energy said higher temperatures had...
-
If the $5 price described in the news clip were adopted, how would consumer surplus, producer surplus, and the deadweight loss change? The price of streaming services has been $10 a month or zero....
-
Calculate the slope of the relationship in Problem 4 between 3,846 and 4,071 theaters. Use the following news clip to work Problems. Kong Tops the Box Office Movie Kong: Skull Island Logan Get Out...
-
Let X U(a, b) a. Show that if \(x \leq a\) then \(P(X \leq x)=0\). b. Show that if \(x>b\) then \(P(X \leq x)=1\). c. Show that if \(a F(x) = 0 x-a b-a 1 x a a
-
Interview an employee at your university, such as a department head or secretary. Have the employee answer the following 13 questions about his or her job and organizational conditions. Then, answer...
-
Suppose a population of bacteria doubles every hour, but that 1.0 x 106 individuals are removed before reproduction to be converted into valuable biological by-products. Suppose the population begins...
-
Kerry, Dawn, Louise and Alex were at a business womens lunch. Kerry was showing the group photos of her new work vehicle that she had sign wrapped to promote her business. Louise thought Kerry was...
-
Draw the demand curve Q = 200 10P. Calculate the price elasticity of demand at prices of $5, $10, and $15 to show how it changes as you move along this linear demand curve.
-
You have $100 to spend on food and clothing. The price of food is $5 and the price of clothing is $10. a. Graph your budget constraint. b. Suppose that the government subsidizes clothing such that...
-
Use utility theory to explain why people ever leave all-you-can-eat buffets.
-
Janice will need to pay $200 at the end of every month for the next 12 months, except for the payment of the 8th month. What is the present value, assuming a rate of 4%, compounded quarterly?
-
List and explain two management tools in the planning process and two measurable performance indicators. Explain in detail.
-
What does a high PE tell us about the value of the stock price (over or under valued)? What does a low PE tell us about the value of the stock price (over or under valued)? Be specific with your...
Study smarter with the SolutionInn App