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Draw a Two Period Budget Line Where the Borrow/lending Rate

Question 23

Multiple Choice

Draw a two period budget line where the borrow/lending rate of interest,r,allows consumers to choose consumption in each of the two periods.C1 and C2 given their anticipated income on two periods,Y1 and Y2.The slope is


A) r
B) -r
C) 1 + r
D) -(1 + r)

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