Suppose there are no borrowing constraints but the individual wishes to leave a bequest of $120,000 (after adjusting for inflation) to heirs. Then annual consumption should be
Consider an individual who enters adulthood and the labor force at age 18, expects to work 5 years at a real income of $10,000 per year, anticipates earning a real income of $40,000 per year from age 23 to 63, expects to retire with a $10,000 annual pension, and live until age 78. Suppose the interest rate is zero, and the individual seeks perfectly smooth consumption across his adult lifetime.
a) $12,000
b) $16,000
c) $20,000
d) $24,000
e) $28,000
e) $28,000
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If the market price is $50 for a unit of a good produced in a perfectly competitive market and the firm's minimum average variable cost is $52, then to maximize its profit (or minimize its loss) the firm should
A) definitely produce the unit. B) shut down. C) not produce the unit but remain open. D) not produce the unit. Whether the firm should shut down or remain open cannot be determined without more information. E) produce the unit only if the price exceeds the average fixed cost.
Of all commercial banks, about ________ belong to the Federal Reserve System
A) 10% B) one half C) one third D) 90%
What is least accurate about marketing and selling in the US prior to the Civil War?
a. Attracting customers was not a main objective of advertising. b. Installment buying was known, but was uncommon until about 1900. c. Most companies eliminated wholesalers to market products directly to their customers and save money. d. Advertising was typically limited to magazines and some occasional outdoor ads in big cities.
If income in the United States rises relative to income in Japan, the yen should appreciate against the dollar, ceteris paribus.
Answer the following statement true (T) or false (F)