Mr Bird Has $100 Income This Year and Zero Income

question 26

Multiple Choice

Mr. Bird has $100 income this year and zero income next year. The market interest rate is 10 percent per year. Mr. Bird also has an investment opportunity in which he can invest $50 today and receive $80 next year. Suppose Mr. Bird consumes $30 this year and invests in the project. What will be his consumption next year?

• A)$80
• B)$82
• C)$100
• D)$102

---

Definitions:

Urgency and Legitimacy

The critical need for action combined with the recognized authenticity or credibility that prompts such action.

Producer Unit

A term used in economics and sociology referring to a group or entity involved in producing goods or services, often within the context of a family or small-scale enterprise.

Consumer Unit

An economic term representing individuals or groups of people who live together and make joint or shared decisions on consumption of goods and services.

Sexuality

Involves elements such as personal identity, sexual behaviors, and desires, highlighting the diverse spectrum of human sexual experience.