Business, 28.11.2019 01:31 kevinkingpin

Hector's wealth is zero, he expects to work for another 45 years at a constant salary of $80,000 and live for another 60 years. assuming taxes are zero, if hector receives an unexpected $20,000 increase in salary his first year of work and he completely smooths consumption over his lifetime, his annual consumption
a. $67,500
b. $75,000.
c. $80,000.
d. $111,111.

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