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In Irving Fisher's Two-Period Consumption Model, If Y1 = 20,000

Question 84

Multiple Choice

In Irving Fisher's two-period consumption model, if Y1 = 20,000, Y2 = 15,000, and the interest rate r is 0.50 (50 percent) , then the maximum possible consumption in period one is:


A) 20,000.
B) 25,000.
C) 30,000.
D) 35,000.

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