Question
1.A household has a wealth endowment of $5 and can use this to either consume (C) or save (S).Consumption of C generates MB of $2.15,
1.A household has a wealth endowment of $5 and can use this to either consume (C) or save (S).Consumption of C generates MB of $2.15, 1.72, 1.4, 1.22 & 1.10 from the 1st, 2nd,... dollar allocated to consumption, respectively.If the current interest rate in the market is 33%, then to maximize the total payoff from C and S, it is optimal for the household to choose C = _____ and S = _____.
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Price Theory and Applications
Authors: Steven Landsburg
9th edition
1285423526, 978-1285947877, 1285947878, 978-1285423524
