Suppose $\bar { X } = \$ 75,000 , \beta = 1$ , and $R = 0.05$
) Assuming logarithmic utility, what is consumption in the future?
A) $75,000
B) $35,714.29
C) $39,375
D) $37,500
E) Not enough information is given.

Question

Quizplus · Accepted Answer

The Answer of Suppose $\bar { X } = \$ 75,000 , \beta = 1$ , and $R = 0.05$
) Assuming logarithmic utility, what is consumption in the future?
A) $75,000
B) $35,714.29
C) $39,375
D) $37,500
E) Not enough information is given.

Suppose Xˉ=$75,000,β=1\bar { X } = \$ 75,000 , \beta = 1Xˉ=$75,000,β=1

Suppose $\bar { X } = \$ 75,000 , \beta = 1$