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Assume a life with only two periods. You earn $100 in the current period and $135 in the second period.

A. If the interest rate is 35%, what is the maximum you can spend in the current period?

B. If the interest rate was lower, you probably would be able to spend more than that. What would be the maximum interest rate that would allow you to spend $225 in the current period?

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M9499575

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