You are one of the crusoes with a personal discount rate of, Ask an Expert

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You are one of the Crusoes with a personal discount rate of 20%. At the begining of the auction your endowment is one bushel of wheat and one plot with a rate of return of 50%. . (a) The auctioneer calls out r = 60%. What do you offer to do? . (b) Now the interest rate is 30%. What do you offer to do? . (c) Finally in equilibrium the rate is 10%. What do you end up doing? What is your plot worth? What is your net worth?

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