{"id":174161,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/macro-economics-hw-help"},"modified":"2018-10-24T09:09:54","modified_gmt":"2018-10-24T09:09:54","slug":"macro-economics-hw-help","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/macro-economics-hw-help\/","title":{"rendered":"macro economics hw help"},"content":{"rendered":"

The following diagram depicts Julia\u00e2s choice of consumption in periods 1 and 2. She has no income in period 1 and an income of $115 in period 2. The current interest rate is 15%. Based on this information, which of the following statements is correct?<\/p>\n

?<\/p>\n

\"png&filename=Fig11-2.png\"A. <\/p>\n

The maximum that Julia can borrow to spend in period 1 is $91.<\/p>\n

B. <\/p>\n

If Julia borrows $80 to spend in period 1, she will have $23 to spend in period 2.<\/p>\n

C. <\/p>\n

The consumption choice of $60 in period 1 and $50 in period 2 is a feasible option.<\/p>\n

D. <\/p>\n

The feasible set will be smaller when the interest rate is 10%.<\/p>\n

1.0 Points<\/p>\n

The diagram depicts Julia\u00e2s indifference curve for consumption in periods 1 and 2. Based on this information, which of the following statements is correct?<\/p>\n

\"png&filename=11-3.png\" A. <\/p>\n

At consumption choice A, Julia places 1.5 times the value of an extra unit of consumption in period 2 as the value in period 1.<\/p>\n

B. <\/p>\n

Julia is impatient at all points on the indifference curve.<\/p>\n

C. <\/p>\n

If Julia was more pure impatient then her indifference curve would be steeper at A.<\/p>\n

D. <\/p>\n

If Julia did not experience diminishing marginal returns to consumption and had no impatience, then her indifference curves would be straight lines with slope exactly equal to -1.<\/p>\n

The diagram depicts Julia\u00e2s choice of consumptions in periods 1 and 2. She has no income in period 1 and an income of $100 in period 2. In scenario 1 the interest rate is 10%, while in scenario 2 it is 78%. Based on this information, which of the following statements is correct?<\/p>\n

\"png&filename=Fig11-4.png\" A. <\/p>\n

Julia is able to consume more in period 2 at G under scenario 2 than at E under scenario 1, as her saving earns a higher interest in the former than in the latter.<\/p>\n

B. <\/p>\n

Julia consumes less in period 1 at G under scenario 2 than at E under scenario 1, as she is less impatient at G.<\/p>\n

C. <\/p>\n

The substitution and income effects of the rate rise partially offset each other to result in a lower consumption outcome in period 1 under scenario 2.<\/p>\n

D. <\/p>\n

For this income scenario of no income in period 1 and an income of $100 in period 2, Julia is unambiguously worse off with an interest rate rise<\/p>\n

The diagram depicts Marco\u00e2s choice of consumptions in periods 1 and 2. He has $100 worth of grain in period 1 and no income in period 2. Marco has two choices. In scheme 1, he can store the grain that he does not consume in period 1. This results in a loss of 20% of the grain due to pests and rotting. In scheme 2, he can sell the grain that he does not consume and lend the money at 10%. Based on this information, which of the following statements is correct?<\/p>\n

\"png&filename=Fig11-5.png\" A. <\/p>\n

The substitution effect implies that Marco will consume more in period 1 under scheme 2 than under scheme 1.<\/p>\n

B. <\/p>\n

The income effect implies that Marco will consume more in period 2 and less in period 1 under scheme 2 than under scheme 1.<\/p>\n

C. <\/p>\n

Marco will unambiguously consume more in period 2 under scheme 2 than in scheme 1.<\/p>\n

D. <\/p>\n

Marco will unambiguously consume less in period 1 under scheme 2 than in scheme 1.<\/p>\n","protected":false},"excerpt":{"rendered":"

The following diagram depicts Julia\u00e2s choice of consumption in periods 1 and 2. She has no income in period 1 and an income of $115 in period 2. The current interest rate is 15%. Based on this information, which of Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-174161","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/174161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=174161"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/174161\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=174161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=174161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=174161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}