{"id":124570,"date":"2022-01-29T07:00:45","date_gmt":"2022-01-29T07:00:45","guid":{"rendered":"https:\/\/essayparlour.com\/custom-essays\/?p=124570"},"modified":"2022-01-29T07:00:45","modified_gmt":"2022-01-29T07:00:45","slug":"consider-the-neoclassical-consumption-model-with-log-utility-and","status":"publish","type":"post","link":"https:\/\/essayparlour.com\/custom-essays\/business-economics-2\/consider-the-neoclassical-consumption-model-with-log-utility-and\/","title":{"rendered":"Consider the neoclassical consumption model with log utility and ?"},"content":{"rendered":"<table style = 'table-striped table-bordered table-hover' responsive='true'>\n<tr>\n<th>Question<\/th>\n<\/tr>\n<tr>\n<td>Consider the neoclassical consumption model with log utility and ? = 1. Suppose an individual begins with $10,000 in   and $30,000 of equity in her house, so that financial assets are ftoday = $40,000. Suppose her labor income stream is $50,000, both today and in the future, and suppose the real interest rate is zero.<br \/>\n (a) What is ctoday and cfuture? How much does the consumer save today?<br \/>\n (b) Suppose the stock market booms, doubling in value. By how much do consumption and saving change today?<br \/>\n (c) Alternatively, suppose housing prices rise so that the individual\u2019s equity in her house rises to $50,000. Now what happens to consumption and saving today?<br \/>\n (d) Discuss briefly how this exercise is related to the state of the U.S. economy around 2007.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Question<\/p>\n<p>\nConsider the neoclassical consumption model with log utility and ? = 1. Suppose an individual begins with $10,000 in   and $30,000 of equity in her house, so that financial assets are ftoday = $40,000. Suppose her labor income <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43],"tags":[],"class_list":["post-124570","post","type-post","status-publish","format-standard","hentry","category-business-economics-2"],"_links":{"self":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts\/124570","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/comments?post=124570"}],"version-history":[{"count":1,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts\/124570\/revisions"}],"predecessor-version":[{"id":124571,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts\/124570\/revisions\/124571"}],"wp:attachment":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/media?parent=124570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/categories?post=124570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/tags?post=124570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}