Question 32 32. Ann maximizes the utility U(со, с1, с2) — u(со) + би(ст) + 82u(с2) with u(c;) = c; and a discount factor 8 < 1. She is indifferent between streams (81, 53, 0) and (0, 53, 100). Then 8 equals (A) 10%; (B) 19%; (C) 0.9; (D) not enough information. O A

Question 32 32. Ann maximizes the utility U(со, с1, с2) — u(со) + би(ст) + 82u(с2) with u(c;) = c; and a discount factor 8 < 1. She is indifferent between streams (81, 53, 0) and (0, 53, 100). Then 8 equals (A) 10%; (B) 19%; (C) 0.9; (D) not enough information. O A

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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