2. Suppose you are 22 years old; you plan to work until age 70; and actuarial tables indicate that you should expect to live to age 82. Your yearly income is $40,000. a. According to the life cycle theory of consumption, how do you decide how much to consume each year? What would be your annual consumption given the information above? Now wow wore bassist tewend nods . her onevin einalamuemo tort ans ease v evirast al nova b. Now suppose your yearly income increases by $10,000 per year permanently. Now what would be your annual consumption? What is your marginal propensity to consume out of permanent income? c. Now suppose you receive a one time only increase in your income of $10,000. By how much would your annual consumption increase? What is your marginal propensity to consume out of transitory income? Misey man nollamenon top aftenweb