In Irving Fisher's two-period consumption model, if Y
1
= 20,000, Y
2
= 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.
Correct Answer:
Verified
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