Tom is allowed to work 5 hours a day at his main job at a factory. To earn extra income, he takes a second job at a fast food restaurant. Even though is second job offers a lower wage, he can work as many hours as he would like. If there is an increase in the wage rate for his factory job, Tom will reduce the number of hours he works at the fast food place, assuming leisure is a normal good.

1. True
2. False

If the real interest rate is > 0,then you are able tosacrificelessthan 1 unit of current consumption for 1 unit of future consumption

1. True
2. False

You receive $20every year for forever, startingright nowat current period.The interest rate is and forever will be 10%.The present value of this income stream is $200

1. True
2. False