Suppose That Molly from Problem 2 Had an Income of $500

question 16

Multiple Choice

Suppose that Molly from Problem 2 had an income of $500 in period 1 and an income of $250 in period 2. Suppose that her utility function were c^a₁c^1-a₂, where a = 0.60 and the interest rate were 25%. If her income in period 1 doubled and her income in period 2 stayed the same, her consumption in period 1 would

• A) double.
• B) increase by $300.
• C) increase by $150.
• D) stay constant.
• E) increase by $500.

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Definitions:

Promotion

A change of assignment to a job at a higher level in the organization

Cultural Audit

An assessment process that reviews an organization's cultural alignment, values, practices, and behaviors.

Goal Alignment

The process of ensuring that individual, team, and organizational objectives are in agreement and contribute to the company's strategy.

Forecasting

The process of making predictions about the future based on past and present data analysis, often used in business for planning purposes.