Assuming a real interest rate of four percent,which of these causes the largest increase in the present value of lifetime resources?
A) a winning lottery ticket that pays $9,600 today
B) an additional $10,000 of income in the future period
C) a salary increase of $5,000 both today and in the future period
D) an additional $10,000 of current wealth
Correct Answer:
Verified
Q33: Intertemporal Budget Constraint Q34: The rate at which a consumer is Q35: In practice,it is usual to assume that,in Q36: Intertemporal Budget Constraint Q37: Consumption smoothing is a logical consequence of Q39: For the majority of the U.S.population _. Q40: Consumption smoothing refers to _. Q41: The value of the marginal propensity to Q42: The Keynesian consumption function does not display Q43: The permanent income hypothesis highlights the phenomenon
A)consumption
A)the impact of
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