In a Two-Period Model, a Household Has an Income of $20,000

question 39

Multiple Choice

In a two-period model, a household has an income of $20,000 in period one and an income of $25,000 in period two. The household faces an interest rate of 50 percent.What is the present value of the household's income if the income in period one increases to $30,000?

• A)​$39,000
• B)​$46,666.66
• C)​$40,555.65
• D)​$50,000

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Examination Stress

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The collective activities and capabilities of the immune system to recognize and fight foreign substances, infections, and diseases.

Immune System Function

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