Sid is a rational consumer who has been neither saving nor, Ask an Expert

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Sid is a rational consumer who has been neither saving nor borrowing (he spends exactly his current income). a. Draw a diagram showing Sid’s endowment and current optimal consumption this year and next. b. Show how Sid’s behavior will change if the interest rate falls. Will he start to save or borrow? If so, which?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91822687

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