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Draw a Two Period Budget Line Where the Borrowing/lending Rate

Question 19

Multiple Choice

Draw a two period budget line where the borrowing/lending rate of interest,r,allows consumers to choose consumption in each of the two periods,C1 and C2,given their anticipated income on two periods,Y1 and Y2.The horizontal (C1) intercept is


A) Draw a two period budget line where the borrowing/lending rate of interest,r,allows consumers to choose consumption in each of the two periods,C<sub>1</sub> and C<sub>2</sub>,given their anticipated income on two periods,Y<sub>1</sub> and Y<sub>2.</sub>The horizontal (C<sub>1</sub>) intercept is A) B) C) D)
B) Draw a two period budget line where the borrowing/lending rate of interest,r,allows consumers to choose consumption in each of the two periods,C<sub>1</sub> and C<sub>2</sub>,given their anticipated income on two periods,Y<sub>1</sub> and Y<sub>2.</sub>The horizontal (C<sub>1</sub>) intercept is A) B) C) D)
C) Draw a two period budget line where the borrowing/lending rate of interest,r,allows consumers to choose consumption in each of the two periods,C<sub>1</sub> and C<sub>2</sub>,given their anticipated income on two periods,Y<sub>1</sub> and Y<sub>2.</sub>The horizontal (C<sub>1</sub>) intercept is A) B) C) D)
D) Draw a two period budget line where the borrowing/lending rate of interest,r,allows consumers to choose consumption in each of the two periods,C<sub>1</sub> and C<sub>2</sub>,given their anticipated income on two periods,Y<sub>1</sub> and Y<sub>2.</sub>The horizontal (C<sub>1</sub>) intercept is A) B) C) D)

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