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please help asap will like urgent no time !!! 4
A consumer's income in the current period is y=100, and income in the future period is y=120. He or she pays lump-sum taxes t=20 in the current period and t = 10 in tho future period. The real interest rate is 0.1, or 10%, per period. Suppose that current and future consumption are perfect complements for the consumer and that he or she always wants to have equal consumption in the current and future periods. b) What are the optimal curreni-period and future-period consumption (rounded to nearest integer)? c=c= c) Suppose the consumer gets an unexpected increase in curtent income and y=140. What will happen? A. Future consumption goes up, current consumption goes up and saving goes up. B. Future consumption goes down, current consumption goes up and saving goes down. C. Future consumption goes up, current consumption goes down and saving goes up. D. Future consumption goes up, current consumption goes up and saving goes down
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