Rick is 25 years old with annual earnings of $50,000. He wants to retire at age 65 and expects to live until age 80. His marginal propensity to consume out of disposable income is 0.95, and marginal propensity to consume out of permanent income is 0.70. A promotion at work, at the age of 30, increases his annual earning permanently by $5,000. As a result, his annual consumption will increase by_ _.__, if he behaves in accordance with the traditional consumer theory, by __, if he behaves in accordance with the Life Cycle hypothesis, and by ____ __, if he behaves in accordance with the Permanent Income hypothesis. $5,000; $4,062.50; $4,750 O $4,750; 3,500; $3,500 $5,000; $4,750; $4,062.50 $4,750; $4,062.50; $4,062.50Suppose that 55 percent of a country's population behaves in accordance with the traditional model of consumption, and 45 percent behaves in accordance with the LC-PIH. If the MPC in the traditional model is 0.8 and disposable income in the economy changes temporarily by $10 million. The consumption in the economy will change by____ million. 1.1 +0.45E 9.0 + 0.55E O 9.9 +0.55E O 4.4+0.45E