Hector's Wealth Is Zero,he Expects to Work for Another 45

question 28

Multiple Choice

Hector's wealth is zero,he expects to work for another 45 years at a constant salary of ?$80 000 and live for another 60 years.If Hector receives a $20 000 bonus during his first year of work and he completely smooths consumption over his lifetime,his marginal propensity to consume out of a transitory increase in income is

• A) 0.004.
• B) 0.017.
• C) 0.075.
• D) 0.75.

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Definitions:

Hot Chocolate

A warm beverage made from cocoa powder, milk or water, and sugar, often enjoyed for its comforting and sweet taste.

Cereal With Milk

A common breakfast food consisting of grains served in a bowl with milk.

Sleep Cycle

A sequence of physiological changes that the body goes through during sleep, typically lasting about 90 minutes and including stages of light sleep, deep sleep, and REM sleep.

Dreaming

The experience of imagined images, sounds, or other sensations during sleep, typically occurring in the REM stage.