Author Question: Maryanne expects to work for another 30 years and expects to live another 10 years after she ... (Read 87 times)

plus1 · **on:** Jun 30, 2018

Maryanne expects to work for another 30 years and expects to live another 10 years after she retires. If Maryanne completely smooths consumption over her lifetime, her marginal propensity to consume out of wealth is

A) 0.025.
B) 0.033.
C) 0.075.
D) 0.10.

Question 2

When the U.S. real interest rate rises ________.

A) U.S. dollar assets earn a higher return relative to foreign assets
B) makes U.S. exports cheaper in foreign currencies
C) imports will decrease
D) all of the above
E) none of the above