In the Two-Period Model, Suppose a Household's Income in Period

question 23

Multiple Choice

In the two-period model, suppose a household's income in period one is $30,000 and its income in period two is $40,000.Also assume that the household face the real interest rate of 25 percent.What is the present value of the
Household's income?​

• A)​$62,000
• B)​$46,000
• C)​$20,000
• D)​$30,000

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Definitions:

Upward Communication

The flow of information from lower levels of a hierarchy to the higher levels, such as from employees to management.

Horizontal Communication

The exchange of information, ideas, or feedback among individuals or teams at the same hierarchical level within an organization.

MUM Effect

Keeping mum about undesirable messages (choosing not to share bad news).

Quid Pro Quo Harassment

Implied or explicit promise of reward in exchange for sexual favors or threat of retaliation if sexual favors are withheld, given to an employee by a coworker or a superior. The Latin phrase quid pro quo roughly means “You do something for me and I’ll do something for you.”