Assignment:
Discussion 1: "Markets, Prices, Supply, and Demand." Please respond to the following:
1. Describe how the risk premium on corporate securities affects the relationship between the savings rate and the rate of consumption.
2. Determine whether a family's sources and uses of funds can be unequal according to economic market theory? Why or why not?
Discussion 2: "Consumption Concepts in Economic Theory." Please respond to the following:
1. Determine the factors and changes in macroeconomic assumptions that can affect the present value of consumption in the multiyear model.
2. Evaluate which of these factors is the most important, and then state why.