The next questions refer to the following.
Current income is 300, expected future income is 363, and the interest rate is 10%.
-If income rises by $63 in each period,so Y(1) = 363 and Y(2) = 426,then in each period consumption
A) also rises by $63
B) becomes 390
C) rises by $56.7, or 90% of $63
D) remains constant
E) rises by $126

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The Answer of The next questions refer to the following.
Current income is 300, expected future income is 363, and the interest rate is 10%.
-If income rises by $63 in each period,so Y(1) = 363 and Y(2) = 426,then in each period consumption
A) also rises by $63
B) becomes 390
C) rises by $56.7, or 90% of $63
D) remains constant
E) rises by $126

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