Intertemporal budget constraint. Budget line 1: Y1 = $900. Y2 = $600. The interest rate is 12 percent, both for
Posted: Wed Jul 06, 2022 5:54 am
Intertemporal budget constraint.
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.
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.