Ms Newcastle Has $60,000 Income This Year and $40,000 Next

question 22

Multiple Choice

Ms. Newcastle has $60,000 income this year and $40,000 next year. The market interest rate is 10 percent per year. Suppose Ms. Newcastle wishes to consume $62,000 next year. What will be her consumption this year?

• A)$19,000
• B)$40,000
• C)$60,000
• D)$70,000

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Definitions:

Kitty Genovese

A woman whose 1964 murder in New York City became famous due to the alleged inaction of numerous witnesses, later prompting the study of the bystander effect.

Assault

An act of physical violence or a threat that places someone in immediate fear of bodily harm or offensive contact.

Bystander

A person who is present at an event or incident but does not take part.

Cognitive Dissonance

The psychological unease felt by someone who simultaneously possesses conflicting beliefs, ideas, or values.