Question: do it on your own, dont copy any answer on internet. 2. Agents A and B have identical preferences over current and future consumption. Agent

do it on your own, dont copy any answer on internet.

2. Agents A and B have identical preferences over current and future consumption. Agent A earns x amount in period 1 and nothing in period 2, while agent B earns nothing in period 1 and x in period 2. They face the same real interest rate. Suppose now there is an increase in the real interest rate. Which agent benefits? Explain with the help of diagrams

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