Consider an individual who lives for m periods, the first h of which he spends working. income in those first h periods is given by yt, and income in periods h+1 through m is zero. the individual has a discount factor of β and can save and borrow at the real interest rater. the individual’s optimal behavior is dictatedby the standard euler equation (you don’t need to derive it).

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

answer the amount a seller is paid minus the cost of production;

answerit is the safest endorsement for business;