Assume an economy with 1000 consumers each consumer has


Assume an economy with 1000 consumers. Each consumer has income in the current period of 50 units and future income of 60 units and pays a lump-sum tax of 10 in the current period and 20 units in the future period. The market real interest rate is 8%. Of the 1000 consumers, 500 consume 60 units in the future, while 500 consume 20 units in the future.

 Determine each consumer's current consumption and current savings.

Request for Solution File

Ask an Expert for Answer!!
Econometrics: Assume an economy with 1000 consumers each consumer has
Reference No:- TGS0571365

Expected delivery within 24 Hours