Budget line 1: Y1 = $900. Y2 = $600. The interest rate is 12 percent, both for borrowing and saving. Utility = C
Posted: Sun Jul 03, 2022 6:50 am
Budget line 1: Y1 =$900. Y2 =$600. The interest rate is 12 percent, both forborrowing and saving.
Utility =C15C27
Draw the budget line, with solved numbers. Solve theoptimal consumption levels to choose in time 1 and time 2.
Utility =C15C27
Draw the budget line, with solved numbers. Solve theoptimal consumption levels to choose in time 1 and time 2.