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.

---

Definitions:

Traffic Engineers

Professionals who apply engineering principles to the planning, design, and management of roads, traffic signals, and other aspects of transportation to ensure safe and efficient movement of people and goods.

Red Light Cycles

The repeated sequence of a traffic signal changing from green to yellow to red and back, regulating vehicle flow.

Malware

Malicious software designed to harm, disrupt, or unauthorizedly access a computer system, network, or device.

Trojan

A type of malware designed to appear harmless or useful to trick users into installing it, which then allows unauthorized access or damage.