Problem
It is known that, were the current period's income increased by £100, an individual would increase current consumption by £80. If the rate of interest is 10 per cent, what will be the effect on the same individual's current consumption of a guaranteed increase in next period's income of £110?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.