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A: Income in this year m1 = $100 Income in next year m2=$100 r=5%
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A: The phase diagram for the equation y=ry(1-ky)
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A: C=25+6Y0.5 I=16 G=14
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A: Given,
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A: As interest rate rises the inter-temporal budget constraints become more steeper.
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A: Answer: Leakages: Leakages refers to the withdrawal of money from the circular flow. When households…
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A:
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A: Answer: hence the Y = 12.5 i
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explain intertemporal coice
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- What is an intertemporal choice? What does it show on a budget constraint?A and B are best friends for almost 20 years already. They live next to each other and hang out with each other everyday. One day, A did not go out of the house so B was worried. B went inside the house of A and found that A was lying unconsciously on the floor. He called for an ambulance and brought A to the hospital. However, A was declared dead on arrival by the hospital. Since all the children of A are residing abroad, B took care of the funeral preparations. After the burial, B asked the children of A for the payment of the funeral expenses. a. Are the children of A liable for the funeral expenses? Why? b. What is the source of the obligation of the liabilities of the children of A, if any?Consider a representative university student who decides how much time to spend on study. Let us call this student Bruno, who has been using academic cheating websites for a year in order to ‘boost’ his performance. Somehow, he has not been caught once. Now consider Angela, another representative university student who also decides how much time to spend on study. She has been a study group which helps her to keep up with the study material as well as to improve her time management and note-taking skills. A year ago, both students studied 35 hours per week and achieved 65%. Currently, they study 32 hours per week and achieve 75%. Assume i) the two students faced the same feasible frontier a year ago, and ii) they have the same preference. Do the following: • Illustrate the effect of cheating on Bruno’s feasible frontier and his optimal decision using a fully labelled diagram where i) the horizontal axis represents the hours of free time per week, and ii) the vertical axis represents…
- Do number 4The COVID-19 pandemic has caused an unprecedented increase in savings in many countries around the world. In the EU, the savings rate of households has jumped from 12.5% to 17%. In 2008-2009, it had moved from 12.5% to 14% (Dossche and Zlatanos 2020). Even if the source of 2020 surge in savings is different from the one of 2008, it is obvious that this increase does not result in more investment and growth. QUESTION: 1. Evaluate if and how increased savings in recession can influence consumption, export, and investmentAs the interest rate rises, does the intertemporal budget constraint become steeper or flatter?
- What will be the impact of Covid 19 on global economy and local economic system? Explain.An individual earns $100 this and $100 next year. On the diagram below, draw the person's intertemporal budget constraint assuming an interest rate of 5%. (Be sure to label the axes correctly. Put in the appropriate numerical values. Note that subscript 1 denotes this year and subscript 2 denotes next year.)Thomas Friedman described Global 1.0, 2.0, and 3.0; please provide your thoughts about what Global 4.0 could be like with IoT as discussed in multiple classes.