The figure below shows a budget set for a consumer over two time periods, with a borrowing
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C2 2200 2000(1.05) Slope =-1.05 2200 Slope=-1.12 2000 2000+2200/1.12 C
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The utility function implies that MRS C 1 C 2 C 2 C 1 At point ...View the full answer
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