Consider irving fisherrsquos two-period model if y1 20 000, Ask an Expert

Economics

Consider Irving Fisher’s two-period model. If y1 = 20, 000, y2 = 15, 000, the interest rate r equals 0.50 (50 percent),

A) What the maximum possible consumption in period one?

B) What the maximum possible consumption in period two?

c) if there is binding consraint on borrowing, what maximum possible consumbrion in period one?

d) if there is a binding consraint on borrowing, what maximum possible consumbrion in period two?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91677686

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