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    Exam 9: A Two-Period Model: The Consumption–Savings Decision and Credit Markets
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    A Consumer's Budget Constraint in the Future Period Is
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A Consumer's Budget Constraint in the Future Period Is

Question 40

Question 40

Multiple Choice

A consumer's budget constraint in the future period is


A) c' = y'- t' + (1 + r) s.
B) c' + (1 + r) s = y'- t'.
C) c + s = y - t.
D) c' = y' - t' - (1 + r) s.
E) y' - t' = (1 + r) s.

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