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If We Represents a Two-Period Consumer's Lifetime Wealth And rr Denotes the Real Rate of Interest, the Horizontal (Current Consumption)

Question 67

Multiple Choice

If we represents a two-period consumer's lifetime wealth and rr denotes the real rate of interest, the horizontal (current consumption) intercept of the consumer's budget line is equal to


A) (1+r) c+we(1+r) - ( 1 + r ) c + w e ( 1 + r ) .
B) we(1+r) w e ( 1 + r ) .
C) we.
D) we(1+r) \frac { w e } { ( 1 + r ) } .
E) (1+r) we\frac { ( 1 + r ) } { w e } .

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