In a Two-Period Model, Assume That There Are 20 Households

question 26

Multiple Choice

In a two-period model, assume that there are 20 households each with an income of $35,000 in period one and an income of $45,000 in period two.The equilibrium rate of interest faced by the household is 50 percent.The government decides to offer each household a tax rebate of $1,500 in period one.As a rational economic agent you know that the government will tax the households in period two, in order to repay its borrowing.With the interest rate unaffected by the government's action, the government will impose a tax of______ per household, in period two.

• A)?$2,600
• B)?$3,265
• C)?$1,500
• D)?$2,250

Explain the adaptive value of specific behavioral strategies in predators and prey within different environmental contexts.

Understand the ecological dynamics of host-parasite relationships and their impact on population sizes.

Comprehend the mechanism of species coexistence through niche differentiation.

Analyze the patterns and consequences of competitive interactions among species.

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Definitions:

Geometric Series

A sequence of numbers where each term after the first is found by multiplying the previous one by a fixed, non-zero number called the common ratio.

Infinite

Without limit or end; extending beyond measure or comprehension.

Terms

Conditions and stipulations that are specified as part of an agreement or contract.

Rational Investor

An individual who makes decisions by maximizing expected utility, based on consistent preferences and available information.