c. Option Three d. Options One and Two are equivalent in value and either will leave Jose as well off as possible. e. Option One, Two and Three are equivalent in value and any of them will leave Jose as well off as possible. 20. Now, suppose that Jose has the above options but each option immediately stops payment if Jose dies. Suppose the Jose knew with certainty that he was going to die in 10 years. If Jose only cares about getting the highest payout possible, what is his best option? a. Option One b. Option Two c. Option d. Options One, Two and Three are all equivalent to Jose Use the information below to answer the next two questions. Consider an economy where the demand for loanable funds from businesses is given by the following equation where Q is the quantity of loanable funds and r is the interest rate: Demand for loanable funds from businesses: Q = 50 5r – Suppose that the supply of loanable funds from households (private savings) is given by the following equation where Q is the quantity of loanable funds and r is the interest rate: Supply of loanable funds from households: Q = (10/3)r Initially assume that this economy is a closed economy and that the government in this economy has a balanced budget. 21. Given this information, if the government decides to run a deficit of $140 we know with certainty that
c. Option Three d. Options One and Two are equivalent in value and either will leave Jose as well off as possible. e. Option One, Two and Three are equivalent in value and any of them will leave Jose as well off as possible. 20. Now, suppose that Jose has the above options but each option immediately stops payment if Jose dies. Suppose the Jose knew with certainty that he was going to die in 10 years. If Jose only cares about getting the highest payout possible, what is his best option? a. Option One b. Option Two c. Option d. Options One, Two and Three are all equivalent to Jose Use the information below to answer the next two questions. Consider an economy where the demand for loanable funds from businesses is given by the following equation where Q is the quantity of loanable funds and r is the interest rate: Demand for loanable funds from businesses: Q = 50 – 5r Suppose that the supply of loanable funds from households (private savings) is given by the following equation where Q is the quantity of loanable funds and r is the interest rate: Supply of loanable funds from households: Q = (10/3)r Initially assume that this economy is a closed economy and that the government in this economy has a balanced budget. 21. Given this information, if the government decides to run a deficit of $140 we know with certainty that
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