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Angela cares about consumption today (c0) and consumption tomorrow (c1). Assume that her MRS01 is c1/c0. Suppose that the price of consumption today and tomorrow
Angela cares about consumption today (c0) and consumption tomorrow (c1). Assume that her MRS01 is c1/c0. Suppose that the price of consumption today and tomorrow are both equal to 1. Also assume that Angela earns $60 this year and $ 30.0 next year. The interest rate is 0.5 (or 50 %). What is today's consumption (no rounding, no units)
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Issues in Economics Today
Authors: Robert C. Guell
8th edition
1259746399, 1259746390, 978-1259746390
