Question: In the Home countryone can exchange 20 currentonsumptiorgoods for 30 future consumptiongoods so 20 goods can be consumedtodayor 30 goods areavailablein thefuture(if thereis no

so 20 goods can be consumedtodayor 30 goods areavailablein thefuture(if thereis no

In the Home countryone can exchange 20 currentonsumptiorgoods for 30 future consumptiongoods so 20 goods can be consumedtodayor 30 goods areavailablein thefuture(if thereis no presentconsumptiob. Theautarkriceratiois simply Pc IP = 1 + r = 1.5 so that r = 0.5. In theForeigncountryone canexchange40 current consumptimgoods for 50 futureconsumptiomo 40 goods can be consumedtoday or

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