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Suppose That in the First Period,a Woman Works,earns Income Y,and

Question 3

Multiple Choice

Suppose that in the first period,a woman works,earns income Y,and saves S of the income.In the second (and last) period,the woman consumes her savings plus whatever interest it earned (r is the interest rate) .How much does the woman consume in the second period if S = 0?


A) 0
B) Y - S
C) Y + S
D) Y(1 + r)

Correct Answer:

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