Consider a consumer who has preferences over consumption today, x1, and consumptiontomorrow, x2. the consumer has an endowment igiven by (m1, m2), they receivem1inincome today andm2in income tomorrow. they can borrow money today at interest rater: they must pay back (1 +r) times the amount tomorrow. they can also save money todaythat will give them (1 +r) times the amount tomorrow. assume thatr > 0.suppose the consumer’s preferences are represented byu(x1, x2) = 2 ln(x1) + ln(x2). withthis utility function, they "care more" about consumption today. if the consumer initiallyhas an endowment given by (15,15), does changing the endowment to (12,18) make thembetter off, worse off, or can you tell? explain your answer.
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Business, 22.06.2019 10:30
You meet that special person and get married. amazingly your spouse has exactly the same income you do 47,810. if your tax status is now married filing jointly what is your tax liability
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Business, 22.06.2019 17:40
Because the demand for wheat tends to be inelastic. true or false
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Business, 22.06.2019 19:00
1. what must one do to perform the essential managerial task of controlling in achieving organizational goals? a. motivate, coordinate, and energize individuals and groups to work together to achieve organizational goals b. choose appropriate organizational goals and courses of action to best achieve those goals c. establish task and authority relationships that allow people to work together to achieve organizational goals d. establish accurate measuring and monitoring systems to evaluate how well the organization has achieved its goals
Answers: 1
Business, 22.06.2019 19:40
Banana computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. how will this decision affect the firm? a. the firm will be protected against the principal-agent problem. b. the firm's administrative costs will be low because of necessary bureaucracy. c. the firm will have more flexibility in purchasing and comparing prices of goods and services. d. the firm will have high-powered incentives, such as hourly wages and salaries.
Answers: 3
Consider a consumer who has preferences over consumption today, x1, and consumptiontomorrow, x2. the...
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