# Question

Let us solve a two-period consumption investment decision similar to the one presented in the text. Assume that you have income equal to $20 in each of two periods. Furthermore, you have the ability to both lend and borrow money at a 10% rate.

Draw the opportunity set and your indifference map. Show the optimum amount of consumption in each period.

Draw the opportunity set and your indifference map. Show the optimum amount of consumption in each period.

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