Present Value and the Intertemporal Budget

Trading consumption across time

Lenders and borrowers on the line

Ranking streams by present value

The real object behind nominal rates

With m1 100, m2 63, r 10 percent, which statement of the budget is correct?

Same consumer, what are the maximum possible c1 and c2?

A consumer with endowment (100, 63) chooses c1 equal to 80. What is she and what does the account show?

Why do analysts of all preference stripes rank payment streams by present value at the market rate?

With m1 100, m2 63, r 10 percent, compute the present value of income, rounded to two decimals, and write the number.

Same consumer saves 20 in period one, compute the extra period-two consumption this funds, and write the number.

With m1 of 100, m2 of 63 and r of 10 percent, what is the maximum possible c2?

The consumer with endowment (100, 63) at r of 10 percent chooses c1 of 80. What is c2?

At r of 10 percent, which stream has the lowest present value?

A consumer whose endowment exceeds her period-one consumption is described how, and what does the bank account show?

With m1 of 100, m2 of 63 and r of 10 percent, compute the maximum c2, and write the number.

The endowment (100, 63) consumer chooses c1 of 80 at r of 10 percent. Compute c2, and write the number.