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Rob has an income of 10000 this year and he expects an

Rob has an income of $10,000 this year and he expects an incomeof $13,200 next year. He can borrow and lend money at an interestrate of 10%. Consumption goods cost $1 per unit this year and thereis no inflation.

a. What is the present value of Rob's endowment?

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Solution Preview :

Prepared by a verified Expert

Macroeconomics: Rob has an income of 10000 this year and he expects an

Reference No:- TGS0668010

Have a Question? (oR Write a Review)

Recent Questions Asked Macroeconomics

Q : A if management uses maximum expected monetary value as the

Q : The entropy change of the universe for any spontaneous

Q : Neatness of your diagram please use the concepts of model

Q : Should a government be involved in funding banks on wall

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Solution Preview :

Prepared by a verified Expert

Macroeconomics: Rob has an income of 10000 this year and he expects an

Reference No:- TGS0668010

Recent Questions Asked Macroeconomics

Q : A if management uses maximum expected monetary value as the

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