A household has $6 in wealth, which allocates between consumption and savings. The MB from consumption is If the interest rate is currently $1.96, 1.45, 1.31, 1.21, 1.13 and 1.07 from the 1st, 2nd..... unit of consumption C. 10%, then the household's optimal consumption would be

A household has $6 in wealth, which allocates between consumption and savings. The MB from consumption is If the interest rate is currently $1.96, 1.45, 1.31, 1.21, 1.13 and 1.07 from the 1st, 2nd..... unit of consumption C. 10%, then the household's optimal consumption would be

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A household has $6 in wealth, which allocates between consumption and savings. The MB from consumption is
$1.96, 1.45, 1.31, 1.21, 1.13 and 1.07 from the 1st, 2nd..... unit of consumption C. If the interest rate is currently
10%, then the household's optimal consumption would be
04
O
3
O
5
6

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