The Next Questions Refer to the Following

question 40

Multiple Choice

The next questions refer to the following.
An individual is endowed with $100 of income in period 1, and will receive an income of 121 in period 2. The interest rate is 10%, and there are only 2 periods.
-In order to have the same level of consumption in both periods,each period's consumption must be

• A) 80
• B) 100
• C) 110
• D) 110.5
• E) 121

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Definitions:

Consumers

Consumers are individuals or entities that purchase goods and services for personal use and not for manufacture or resale.

Distribution

The process of making a product or service available for the consumer or business user that needs it, which can include warehousing, transportation, and logistics.

Entrepreneurial Ability

The capacity to innovate, introduce new products or services, improve processes or business models, and effectively manage and grow a business under conditions of uncertainty.

Production Technique

Production technique refers to the method or process used in transforming inputs into outputs in the production of goods or services.