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

question 13

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 an unexpected $20 000 increase in salary his first year of work and he completely smooths consumption over his lifetime,his marginal propensity to consume is

• A) 0.6.
• B) 0.67.
• C) 0.75.
• D) 0.8.

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Definitions:

Nightmares

Nightmares that awaken the sleeper with feelings of fear and anxiety.

Brain Waves

Patterns of neural oscillations in the brain, measurable with an EEG, that reflect differing states of brain activity.

Conscious

The state of being awake and aware of one's surroundings and experiences.

Preconscious Material

Preconscious material consists of thoughts and feelings that are not currently in conscious awareness but can be easily accessed or recalled.