Question
Crusoe begins with an endowment A. Point R is the
consumption combination he would choose at real interest rate r and point R´ is the consumption combination he would choose at real interest rate r´. Which of the following statements is true?Solution
Crusoe's wealth has decreased because of the change in the real interest rate. Because Crusoe's endowment and preferences are such that he is a borrower, the increase in the interest rate hurts him. Note the MRS = 1+r at point R.
Yukti borrowed a total of ₹24,000, dividing it into two parts. She paid simple interest on one part at 18% per annum and on the other part at 12% per ...
Difference between a number and its square root is 42. Find the number.
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Two inlet pipes 'A' and 'B' can fill an empty tank in 48 minutes and 80 minutes, respectively. Another outlet pipe 'C' can empty the tank in 120 minutes...
Find the simplified value of the given expression:
What approximate value will come in place of the question mark (?) in the following question? (Note: You are not expected to calculate the exact value.)...
The number of boys in a class is five times the number of girls. Which of the following numbers cannot represent the total number of children in the class?
Two cars start from a place with a speed of 30 km/hr at an interval of 10 minutes. What is the speed of a man coming from the opposite direction towards...
