Advanced Placement (AP), 16.05.2021 01:00, AnActualTrashcan

An economy consists of a household and the government The household lives two periods (the current period and the "future"). In each period, the
household receives income: it pays taxes to the government, and it consumes. There are no
transfer payments. Therefore Net Taxes (T)-Taxes-Tr-Taxes. The household does not leave any
bequest (it ends the future period with no resources). The household starts the current period with
no debt. The value of its initial assets is given. The household can borrow and lend at the real
Interest rater.
The value of the real interest rate is r = 0.25. Round all answers to the second decimal
Assume throughout that the household wants the ratio of future consumption to current
consumption to equal 1+r.
Current Period
• Households' income (before taxes): 20
• Initial Assets: 10
• Taxes: 10
Future Period
• Households' income (before taxes): 30
• Taxes: 5
a. The present value of lifetime resources (lifetime disposable income plus assets) is
b. The value of current consumption is
The value of private savings is
and the value of lending is__

Answers: 2

Show answers

Other questions on the subject: Advanced Placement (AP)

Advanced Placement (AP), 23.06.2019 12:50, gonzalesnik

Want free points + free brainliest? answer this drivers ed question correctly and i got you! a higher grade number for oil means it is a. heavier b. more viscous c. less viscous d. more important

Answers: 2

continue

Advanced Placement (AP), 25.06.2019 21:30, angelina6836

Aphysical education teacher lets students read material in a workbook and then complete worksheets on the material. to what type of thinker would this assessment most likely appeal? analytical exploratory structured relational

Answers: 1

continue

Advanced Placement (AP), 27.06.2019 02:50, haileybug0305

There was an overuse of fertilizers in william's farm. this led to the destruction of the crops, and william incurred huge losses. which management function was neglected in this process?

Answers: 2

continue

Advanced Placement (AP), 27.06.2019 07:00, anthony4034

Which of the following forests would the wilderness act of 1964 most effectively protect from harmful logging? i. a forest containing several service roads ii. a forest through which a highway has been constructed iii. a forest that has never been affected by human development a. i only b. ii only c. iii only d. i and ii only e. i and iii only

Answers: 1

continue

Do you know the correct answer?

An economy consists of a household and the government The household lives two periods (the current...