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 completely smooths consumption over his lifetime, his annual consumption is

The expected rate of currency depreciation is equal to the proportional difference between the forward rate and the spot rate. This is known as the:

a. forward depreciation. b. backward depreciation. c. forward premium. d. backward premium.

Because the value of marginal product diminishes as the quantity of labor employed increases, the ________ the wage rate, the ________ workers the firm hires

A) lower; more B) higher; more C) lower; fewer D) None of the above answers is correct because there is no relationship between the wage rate and the number of workers hired.