Total consumption available

I’m trying to write my paper and I’m stuck. Can you help?

Our reliable essay writing service is a great opportunity for you to save your time and receive the best paper ever.

Seth could consume $120 next year if he saved all his current earnings. He expects to earn nothing next year. The intertemporal budget constraint for Seth is given by the equation C2 = 120 – 1.2C1 where C1 = possible consumption in year 1 and C2 = possible consumption in year 2. Assume that C1 is on the horizontal axis and C2 is on the vertical axis. a. What is the present value of the total consumption available?b. What is the market interest rate?c. Seth will definitely consume zero in year 1 if his MRSC1 for C2 is less than __________at all points on his indifference curve.d. Seth will definitely save nothing for next year if his MRSC1 for C2 is greater than ______at all points on his indifference curve.e. Assuming Seth starts from a position where he earns all his income in the beginning of year 1, sketch Seth’s intertemporal budget constraint and show one of his indifference curves for a case where he will save $20 for year two.a. What is the present value of the total consumption available?If C2 is set to zero, then C1 must be 100. This is the same as the horizontal intercept.b. What is the market interest rate?The…

Plagiarism-free and delivered on time!

We are passionate about delivering quality essays.

Our writers know how to write on any topic and subject area while meeting all of your specific requirements.

Unlike most other services, we will do a free revision if you need us to make corrections even after delivery.


How it Works


Place an order

Fill out the order form.

Attach any custom instructions that is required to complete your order.

Make Payment

Pay online safely. 

The order form will redirect you to a payment page.

Receive Order via Email

Once the order is complete, we’ll send it via the email provided on the order form.

All Papers are Written from Scratch