Microeconomics exercise questions I have sample questions. If you can solve my exam same day message me
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Microeconomics exercise questions I have sample questions. If you can solve my exam same day message me. Exam is on 12th May 14.30 (Vienna time)
Microeconomics exercise questions I have sample questions. If you can solve my exam same day message me
EXERCISE 5 Assume that you are a consumer that is facing intertemporal choice problem: (,+1)= ()+ 1 1+(+1), where ()= √. Your initial endowment in the periods t and t+1 is the same and equal to $400. a) What should be the value of that would make you indifferent between consuming today and tomorrow? In which case you care only about your current consumption? b) Assume that = 0.2 and = 0.4. What is your optimal consumption ( ∗;+1∗ ) in this case? Are you a borrower or a le nder? c) Assume that = 0.4 and = 0.2. What is your optimal consumption ( ∗;+1∗ ) in this case? Are you a borrower or a lender? d) Support graphically your answers to the previous points
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