It's a good idea to decrease your maximum pay.

a. true

b. false if you have a fully funded emergency fund, you might consider increasing your stop-loss.

a. true

b. false what does having 80/20 coverage mean? insurance pays 80% of your deductible, and you pay 20% 80% of your claims are covered and 20% are not after a deductible has been paid, insurance pays 80% and you pay 20% the insurance company pays you 80% and the doctor 20% nearly 60% of workers in the us have health insurance through their employers.

a. true

b. false to save money on your health insurance, you need to your deductible. decrease double increase remove

3. saving two consumers, larry and jeff, have utility functions defined over the two periods of their lives: middle age (period zero) and retirement (period 1). they have the same income in period 0 of m dollars and they will not earn income in period 1. the interest rate they face is r. larry’s and jeff’s utility functions are as follow. = 0.5 + 0.5 and = 0.5 + 0.5 for each person is between zero and one and represents each consumer’s temporal discount econ 340: intermediate microeconomics. ben van kammen: purdue university. rate. a. write the budget constraint that applies to both jeff and larry in terms of consumption in each period and ), interest rate, and m. b. what is larry’s and what is jeff’s marginal rate of intertemporal substitution? c. what is the slope of the budget constraint? d. write each consumer’s condition for lifetime utility maximization. e. re-arrange the conditions from part (d) to solve for the ratio, . f. if > which consumer will save more of his middle age income? g. if > 1 1+ , in which period will larry consume more: = 0 or = 1?