SlideShare a Scribd company logo
1 of 1
Download to read offline
(4) For each individual, suppose there a unit increase in time 1 income. So the type 1 individual
has 7 units of income at time 1 and the type 2 has 3 units of income at time 1 . What is the
impact on the equilibrium interest rate. Explain the intuition behind this result, showing the
impact on the total saving curve. ( 3 points) What are the new values for s1 and s2 ? What is the
new value for the equilibrium interest rate? Use the graph above to show the impact on the total
saving curve and the impact on the equilibrium interest rate.

More Related Content

More from mdualudin007

(1 Point) Please match the following variable properties with their d.pdf
 (1 Point) Please match the following variable properties with their d.pdf (1 Point) Please match the following variable properties with their d.pdf
(1 Point) Please match the following variable properties with their d.pdfmdualudin007
 
(1 point) If samples of size 37 are taken from a population with mean.pdf
 (1 point) If samples of size 37 are taken from a population with mean.pdf (1 point) If samples of size 37 are taken from a population with mean.pdf
(1 point) If samples of size 37 are taken from a population with mean.pdfmdualudin007
 
Bag breaks open; included as delay in the allowance factor Conveyo.pdf
  Bag breaks open; included as delay in the allowance factor  Conveyo.pdf  Bag breaks open; included as delay in the allowance factor  Conveyo.pdf
Bag breaks open; included as delay in the allowance factor Conveyo.pdfmdualudin007
 
Prove the following E(MSR)=2+12(Xix)2.pdf
  Prove the following E(MSR)=2+12(Xix)2.pdf  Prove the following E(MSR)=2+12(Xix)2.pdf
Prove the following E(MSR)=2+12(Xix)2.pdfmdualudin007
 
Computer Architecture HOW do I design a computer = Instruction .pdf
  Computer Architecture HOW do I design a computer  = Instruction .pdf  Computer Architecture HOW do I design a computer  = Instruction .pdf
Computer Architecture HOW do I design a computer = Instruction .pdfmdualudin007
 
( Ch2 ISA)3. Assume that the top of the stack in a progra.pdf
 ( Ch2 ISA)3. Assume that the top of the stack in a progra.pdf ( Ch2 ISA)3. Assume that the top of the stack in a progra.pdf
( Ch2 ISA)3. Assume that the top of the stack in a progra.pdfmdualudin007
 
The goal of this assignment is to get familiar with pipelining in C.pdf
  The goal of this assignment is to get familiar with pipelining in C.pdf  The goal of this assignment is to get familiar with pipelining in C.pdf
The goal of this assignment is to get familiar with pipelining in C.pdfmdualudin007
 
( 20 points) Benzene is a common groundwater contaminant. Based on a .pdf
 ( 20 points) Benzene is a common groundwater contaminant. Based on a .pdf ( 20 points) Benzene is a common groundwater contaminant. Based on a .pdf
( 20 points) Benzene is a common groundwater contaminant. Based on a .pdfmdualudin007
 
(2) Solve the following recurrence relation by using Recursion Trees .pdf
 (2) Solve the following recurrence relation by using Recursion Trees .pdf (2) Solve the following recurrence relation by using Recursion Trees .pdf
(2) Solve the following recurrence relation by using Recursion Trees .pdfmdualudin007
 
(20 pts) Let X and Y be two statistically independent random variable.pdf
 (20 pts) Let X and Y be two statistically independent random variable.pdf (20 pts) Let X and Y be two statistically independent random variable.pdf
(20 pts) Let X and Y be two statistically independent random variable.pdfmdualudin007
 
(2 pts.) Consider the following ordered list of data, x and a key.pdf
 (2 pts.) Consider the following ordered list of data,  x  and a key.pdf (2 pts.) Consider the following ordered list of data,  x  and a key.pdf
(2 pts.) Consider the following ordered list of data, x and a key.pdfmdualudin007
 
(2 points) (Problem 4.96) Suppose that a random variable Y has a prob.pdf
 (2 points) (Problem 4.96) Suppose that a random variable Y has a prob.pdf (2 points) (Problem 4.96) Suppose that a random variable Y has a prob.pdf
(2 points) (Problem 4.96) Suppose that a random variable Y has a prob.pdfmdualudin007
 
(1pts) Refer to figure above. At Q1, there is a tendency for Real GDP.pdf
 (1pts) Refer to figure above. At Q1, there is a tendency for Real GDP.pdf (1pts) Refer to figure above. At Q1, there is a tendency for Real GDP.pdf
(1pts) Refer to figure above. At Q1, there is a tendency for Real GDP.pdfmdualudin007
 
(15 pts) The joint density function of random variables X and Y is gi.pdf
 (15 pts) The joint density function of random variables X and Y is gi.pdf (15 pts) The joint density function of random variables X and Y is gi.pdf
(15 pts) The joint density function of random variables X and Y is gi.pdfmdualudin007
 
(12 points) X and Y are identically distributed random variables with.pdf
 (12 points) X and Y are identically distributed random variables with.pdf (12 points) X and Y are identically distributed random variables with.pdf
(12 points) X and Y are identically distributed random variables with.pdfmdualudin007
 
(10 points) A Bernoull difterential equation is one of the form dxdy+.pdf
 (10 points) A Bernoull difterential equation is one of the form dxdy+.pdf (10 points) A Bernoull difterential equation is one of the form dxdy+.pdf
(10 points) A Bernoull difterential equation is one of the form dxdy+.pdfmdualudin007
 
�rg�tsel davranzlenim Y�netimi, Giriim Sermayesi Tarz Giriim kap.pdf
�rg�tsel davranzlenim Y�netimi, Giriim Sermayesi Tarz Giriim kap.pdf�rg�tsel davranzlenim Y�netimi, Giriim Sermayesi Tarz Giriim kap.pdf
�rg�tsel davranzlenim Y�netimi, Giriim Sermayesi Tarz Giriim kap.pdfmdualudin007
 
�Qu� tipo de profesional de recursos humanos utiliza varios m�todos,.pdf
�Qu� tipo de profesional de recursos humanos utiliza varios m�todos,.pdf�Qu� tipo de profesional de recursos humanos utiliza varios m�todos,.pdf
�Qu� tipo de profesional de recursos humanos utiliza varios m�todos,.pdfmdualudin007
 
�� aylk yatrm i�in fazladan 1.000.000 ABD dolar olan IBMin sayman o.pdf
�� aylk yatrm i�in fazladan 1.000.000 ABD dolar olan IBMin sayman o.pdf�� aylk yatrm i�in fazladan 1.000.000 ABD dolar olan IBMin sayman o.pdf
�� aylk yatrm i�in fazladan 1.000.000 ABD dolar olan IBMin sayman o.pdfmdualudin007
 

More from mdualudin007 (19)

(1 Point) Please match the following variable properties with their d.pdf
 (1 Point) Please match the following variable properties with their d.pdf (1 Point) Please match the following variable properties with their d.pdf
(1 Point) Please match the following variable properties with their d.pdf
 
(1 point) If samples of size 37 are taken from a population with mean.pdf
 (1 point) If samples of size 37 are taken from a population with mean.pdf (1 point) If samples of size 37 are taken from a population with mean.pdf
(1 point) If samples of size 37 are taken from a population with mean.pdf
 
Bag breaks open; included as delay in the allowance factor Conveyo.pdf
  Bag breaks open; included as delay in the allowance factor  Conveyo.pdf  Bag breaks open; included as delay in the allowance factor  Conveyo.pdf
Bag breaks open; included as delay in the allowance factor Conveyo.pdf
 
Prove the following E(MSR)=2+12(Xix)2.pdf
  Prove the following E(MSR)=2+12(Xix)2.pdf  Prove the following E(MSR)=2+12(Xix)2.pdf
Prove the following E(MSR)=2+12(Xix)2.pdf
 
Computer Architecture HOW do I design a computer = Instruction .pdf
  Computer Architecture HOW do I design a computer  = Instruction .pdf  Computer Architecture HOW do I design a computer  = Instruction .pdf
Computer Architecture HOW do I design a computer = Instruction .pdf
 
( Ch2 ISA)3. Assume that the top of the stack in a progra.pdf
 ( Ch2 ISA)3. Assume that the top of the stack in a progra.pdf ( Ch2 ISA)3. Assume that the top of the stack in a progra.pdf
( Ch2 ISA)3. Assume that the top of the stack in a progra.pdf
 
The goal of this assignment is to get familiar with pipelining in C.pdf
  The goal of this assignment is to get familiar with pipelining in C.pdf  The goal of this assignment is to get familiar with pipelining in C.pdf
The goal of this assignment is to get familiar with pipelining in C.pdf
 
( 20 points) Benzene is a common groundwater contaminant. Based on a .pdf
 ( 20 points) Benzene is a common groundwater contaminant. Based on a .pdf ( 20 points) Benzene is a common groundwater contaminant. Based on a .pdf
( 20 points) Benzene is a common groundwater contaminant. Based on a .pdf
 
(2) Solve the following recurrence relation by using Recursion Trees .pdf
 (2) Solve the following recurrence relation by using Recursion Trees .pdf (2) Solve the following recurrence relation by using Recursion Trees .pdf
(2) Solve the following recurrence relation by using Recursion Trees .pdf
 
(20 pts) Let X and Y be two statistically independent random variable.pdf
 (20 pts) Let X and Y be two statistically independent random variable.pdf (20 pts) Let X and Y be two statistically independent random variable.pdf
(20 pts) Let X and Y be two statistically independent random variable.pdf
 
(2 pts.) Consider the following ordered list of data, x and a key.pdf
 (2 pts.) Consider the following ordered list of data,  x  and a key.pdf (2 pts.) Consider the following ordered list of data,  x  and a key.pdf
(2 pts.) Consider the following ordered list of data, x and a key.pdf
 
(2 points) (Problem 4.96) Suppose that a random variable Y has a prob.pdf
 (2 points) (Problem 4.96) Suppose that a random variable Y has a prob.pdf (2 points) (Problem 4.96) Suppose that a random variable Y has a prob.pdf
(2 points) (Problem 4.96) Suppose that a random variable Y has a prob.pdf
 
(1pts) Refer to figure above. At Q1, there is a tendency for Real GDP.pdf
 (1pts) Refer to figure above. At Q1, there is a tendency for Real GDP.pdf (1pts) Refer to figure above. At Q1, there is a tendency for Real GDP.pdf
(1pts) Refer to figure above. At Q1, there is a tendency for Real GDP.pdf
 
(15 pts) The joint density function of random variables X and Y is gi.pdf
 (15 pts) The joint density function of random variables X and Y is gi.pdf (15 pts) The joint density function of random variables X and Y is gi.pdf
(15 pts) The joint density function of random variables X and Y is gi.pdf
 
(12 points) X and Y are identically distributed random variables with.pdf
 (12 points) X and Y are identically distributed random variables with.pdf (12 points) X and Y are identically distributed random variables with.pdf
(12 points) X and Y are identically distributed random variables with.pdf
 
(10 points) A Bernoull difterential equation is one of the form dxdy+.pdf
 (10 points) A Bernoull difterential equation is one of the form dxdy+.pdf (10 points) A Bernoull difterential equation is one of the form dxdy+.pdf
(10 points) A Bernoull difterential equation is one of the form dxdy+.pdf
 
�rg�tsel davranzlenim Y�netimi, Giriim Sermayesi Tarz Giriim kap.pdf
�rg�tsel davranzlenim Y�netimi, Giriim Sermayesi Tarz Giriim kap.pdf�rg�tsel davranzlenim Y�netimi, Giriim Sermayesi Tarz Giriim kap.pdf
�rg�tsel davranzlenim Y�netimi, Giriim Sermayesi Tarz Giriim kap.pdf
 
�Qu� tipo de profesional de recursos humanos utiliza varios m�todos,.pdf
�Qu� tipo de profesional de recursos humanos utiliza varios m�todos,.pdf�Qu� tipo de profesional de recursos humanos utiliza varios m�todos,.pdf
�Qu� tipo de profesional de recursos humanos utiliza varios m�todos,.pdf
 
�� aylk yatrm i�in fazladan 1.000.000 ABD dolar olan IBMin sayman o.pdf
�� aylk yatrm i�in fazladan 1.000.000 ABD dolar olan IBMin sayman o.pdf�� aylk yatrm i�in fazladan 1.000.000 ABD dolar olan IBMin sayman o.pdf
�� aylk yatrm i�in fazladan 1.000.000 ABD dolar olan IBMin sayman o.pdf
 

Recently uploaded

Stl Algorithms in C++ jjjjjjjjjjjjjjjjjj
Stl Algorithms in C++ jjjjjjjjjjjjjjjjjjStl Algorithms in C++ jjjjjjjjjjjjjjjjjj
Stl Algorithms in C++ jjjjjjjjjjjjjjjjjjMohammed Sikander
 
The Story of Village Palampur Class 9 Free Study Material PDF
The Story of Village Palampur Class 9 Free Study Material PDFThe Story of Village Palampur Class 9 Free Study Material PDF
The Story of Village Palampur Class 9 Free Study Material PDFVivekanand Anglo Vedic Academy
 
Sternal Fractures & Dislocations - EMGuidewire Radiology Reading Room
Sternal Fractures & Dislocations - EMGuidewire Radiology Reading RoomSternal Fractures & Dislocations - EMGuidewire Radiology Reading Room
Sternal Fractures & Dislocations - EMGuidewire Radiology Reading RoomSean M. Fox
 
Graduate Outcomes Presentation Slides - English (v3).pptx
Graduate Outcomes Presentation Slides - English (v3).pptxGraduate Outcomes Presentation Slides - English (v3).pptx
Graduate Outcomes Presentation Slides - English (v3).pptxneillewis46
 
8 Tips for Effective Working Capital Management
8 Tips for Effective Working Capital Management8 Tips for Effective Working Capital Management
8 Tips for Effective Working Capital ManagementMBA Assignment Experts
 
male presentation...pdf.................
male presentation...pdf.................male presentation...pdf.................
male presentation...pdf.................MirzaAbrarBaig5
 
ANTI PARKISON DRUGS.pptx
ANTI         PARKISON          DRUGS.pptxANTI         PARKISON          DRUGS.pptx
ANTI PARKISON DRUGS.pptxPoojaSen20
 
SURVEY I created for uni project research
SURVEY I created for uni project researchSURVEY I created for uni project research
SURVEY I created for uni project researchCaitlinCummins3
 
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽中 央社
 
When Quality Assurance Meets Innovation in Higher Education - Report launch w...
When Quality Assurance Meets Innovation in Higher Education - Report launch w...When Quality Assurance Meets Innovation in Higher Education - Report launch w...
When Quality Assurance Meets Innovation in Higher Education - Report launch w...Gary Wood
 
philosophy and it's principles based on the life
philosophy and it's principles based on the lifephilosophy and it's principles based on the life
philosophy and it's principles based on the lifeNitinDeodare
 
The basics of sentences session 4pptx.pptx
The basics of sentences session 4pptx.pptxThe basics of sentences session 4pptx.pptx
The basics of sentences session 4pptx.pptxheathfieldcps1
 
How to Analyse Profit of a Sales Order in Odoo 17
How to Analyse Profit of a Sales Order in Odoo 17How to Analyse Profit of a Sales Order in Odoo 17
How to Analyse Profit of a Sales Order in Odoo 17Celine George
 
diagnosting testing bsc 2nd sem.pptx....
diagnosting testing bsc 2nd sem.pptx....diagnosting testing bsc 2nd sem.pptx....
diagnosting testing bsc 2nd sem.pptx....Ritu480198
 
BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...
BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...
BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...Nguyen Thanh Tu Collection
 
Championnat de France de Tennis de table/
Championnat de France de Tennis de table/Championnat de France de Tennis de table/
Championnat de France de Tennis de table/siemaillard
 
PSYPACT- Practicing Over State Lines May 2024.pptx
PSYPACT- Practicing Over State Lines May 2024.pptxPSYPACT- Practicing Over State Lines May 2024.pptx
PSYPACT- Practicing Over State Lines May 2024.pptxMarlene Maheu
 
An overview of the various scriptures in Hinduism
An overview of the various scriptures in HinduismAn overview of the various scriptures in Hinduism
An overview of the various scriptures in HinduismDabee Kamal
 
Đề tieng anh thpt 2024 danh cho cac ban hoc sinh
Đề tieng anh thpt 2024 danh cho cac ban hoc sinhĐề tieng anh thpt 2024 danh cho cac ban hoc sinh
Đề tieng anh thpt 2024 danh cho cac ban hoc sinhleson0603
 
How To Create Editable Tree View in Odoo 17
How To Create Editable Tree View in Odoo 17How To Create Editable Tree View in Odoo 17
How To Create Editable Tree View in Odoo 17Celine George
 

Recently uploaded (20)

Stl Algorithms in C++ jjjjjjjjjjjjjjjjjj
Stl Algorithms in C++ jjjjjjjjjjjjjjjjjjStl Algorithms in C++ jjjjjjjjjjjjjjjjjj
Stl Algorithms in C++ jjjjjjjjjjjjjjjjjj
 
The Story of Village Palampur Class 9 Free Study Material PDF
The Story of Village Palampur Class 9 Free Study Material PDFThe Story of Village Palampur Class 9 Free Study Material PDF
The Story of Village Palampur Class 9 Free Study Material PDF
 
Sternal Fractures & Dislocations - EMGuidewire Radiology Reading Room
Sternal Fractures & Dislocations - EMGuidewire Radiology Reading RoomSternal Fractures & Dislocations - EMGuidewire Radiology Reading Room
Sternal Fractures & Dislocations - EMGuidewire Radiology Reading Room
 
Graduate Outcomes Presentation Slides - English (v3).pptx
Graduate Outcomes Presentation Slides - English (v3).pptxGraduate Outcomes Presentation Slides - English (v3).pptx
Graduate Outcomes Presentation Slides - English (v3).pptx
 
8 Tips for Effective Working Capital Management
8 Tips for Effective Working Capital Management8 Tips for Effective Working Capital Management
8 Tips for Effective Working Capital Management
 
male presentation...pdf.................
male presentation...pdf.................male presentation...pdf.................
male presentation...pdf.................
 
ANTI PARKISON DRUGS.pptx
ANTI         PARKISON          DRUGS.pptxANTI         PARKISON          DRUGS.pptx
ANTI PARKISON DRUGS.pptx
 
SURVEY I created for uni project research
SURVEY I created for uni project researchSURVEY I created for uni project research
SURVEY I created for uni project research
 
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
 
When Quality Assurance Meets Innovation in Higher Education - Report launch w...
When Quality Assurance Meets Innovation in Higher Education - Report launch w...When Quality Assurance Meets Innovation in Higher Education - Report launch w...
When Quality Assurance Meets Innovation in Higher Education - Report launch w...
 
philosophy and it's principles based on the life
philosophy and it's principles based on the lifephilosophy and it's principles based on the life
philosophy and it's principles based on the life
 
The basics of sentences session 4pptx.pptx
The basics of sentences session 4pptx.pptxThe basics of sentences session 4pptx.pptx
The basics of sentences session 4pptx.pptx
 
How to Analyse Profit of a Sales Order in Odoo 17
How to Analyse Profit of a Sales Order in Odoo 17How to Analyse Profit of a Sales Order in Odoo 17
How to Analyse Profit of a Sales Order in Odoo 17
 
diagnosting testing bsc 2nd sem.pptx....
diagnosting testing bsc 2nd sem.pptx....diagnosting testing bsc 2nd sem.pptx....
diagnosting testing bsc 2nd sem.pptx....
 
BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...
BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...
BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...
 
Championnat de France de Tennis de table/
Championnat de France de Tennis de table/Championnat de France de Tennis de table/
Championnat de France de Tennis de table/
 
PSYPACT- Practicing Over State Lines May 2024.pptx
PSYPACT- Practicing Over State Lines May 2024.pptxPSYPACT- Practicing Over State Lines May 2024.pptx
PSYPACT- Practicing Over State Lines May 2024.pptx
 
An overview of the various scriptures in Hinduism
An overview of the various scriptures in HinduismAn overview of the various scriptures in Hinduism
An overview of the various scriptures in Hinduism
 
Đề tieng anh thpt 2024 danh cho cac ban hoc sinh
Đề tieng anh thpt 2024 danh cho cac ban hoc sinhĐề tieng anh thpt 2024 danh cho cac ban hoc sinh
Đề tieng anh thpt 2024 danh cho cac ban hoc sinh
 
How To Create Editable Tree View in Odoo 17
How To Create Editable Tree View in Odoo 17How To Create Editable Tree View in Odoo 17
How To Create Editable Tree View in Odoo 17
 

(4) For each individual, suppose there a unit increase in time 1 inco.pdf

  • 1. (4) For each individual, suppose there a unit increase in time 1 income. So the type 1 individual has 7 units of income at time 1 and the type 2 has 3 units of income at time 1 . What is the impact on the equilibrium interest rate. Explain the intuition behind this result, showing the impact on the total saving curve. ( 3 points) What are the new values for s1 and s2 ? What is the new value for the equilibrium interest rate? Use the graph above to show the impact on the total saving curve and the impact on the equilibrium interest rate.