Question
1. You have an avocado tree, which grows 100 avocados this year, 50 next year. Your neighbor has an avocado tree, which grows 0 avocados
1. You have an avocado tree, which grows 100 avocados this year, 50 next year. Your neighbor has an avocado tree, which grows 0 avocados this year, 150 next year. Under agreement "1 today = 1 tomo". Let s be the number of avocados you save. Under the optimal saving, consumpiton this year c1=?
2. You have an avocado tree, which grows 100 avocados this year, 50 next year. Your neighbor has an avocado tree, which grows 0 avocados this year, 150 next year. Under agreement "1 today = 1 tomo". Let s be the number of avocados you save. Consumption next year c2=?
3. You have an avocado tree, which grows 400 avocados this year, 150 next year. Your neighbor has an avocado tree, which grows 0 avocados this year, 50 next year. Is "1 today = 5 tomo" an equilibrium exchange rate? A. yes B. no
4. You have an avocado tree, which grows 400 avocados this year, 150 next year. Your neighbor has an avocado tree, which grows 0 avocados this year, 50 next year. The equilibrium exchange rate is "1 today = ? tomo".
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