Assume that income in year 1 is 1000 and 1200 in year 2 and the individual can against his future income or lend his current income at zero cost. Graph the budget constraint. Measure consumption in year 1 along the horizontal axis and consumption in year 2 along the vertical axis.

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The Answer of Assume that income in year 1 is 1000 and 1200 in year 2 and the individual can against his future income or lend his current income at zero cost. Graph the budget constraint. Measure consumption in year 1 along the horizontal axis and consumption in year 2 along the vertical axis.

Assume That Income in Year 1 Is 1000 and 1200