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

Question 1

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) .What is the opportunity cost of first-period consumption?


A) Y(1 + r) 2
B) 1 + r
C) Y - S
D) Y(1 + r)

Correct Answer:

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