Which of the following will cause a reduction in current consumption?
A) a reduction in current disposable income
B) a reduction in financial wealth
C) a reduction in human wealth
D) all of the above
E) both B and C
Question 2
For this question, assume that the interest rate is greater than 0. Given this information and the information about the payments provided below, rank the following three sequences of payments according to their present value A B C 2005 190 200 210 2006 200 200 200 2007 210 200 190
A) A > B > C
B) A > C > B
C) C > B > A
D) C > A > B
E) B > A > C
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