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Assume you are a twenty-five year old who expects to work for 40 years and then enjoy 30 years of retirement. If you behave according
Assume you are a twenty-five year old who expects to work for 40 years and then enjoy 30 years of retirement. If you behave according to the life-cycle/permanent-income hypothesis, how would your current consumption change if: a. you win $1,000,000 in the lottery this year. b. you expect to get a $1,000,000 signing bonus when you get a job next year.
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