Question: Harry has preferences over present and future consumption. We will represent such preferences in terms of his decisions to save money. Harry has $ 1
Harry has preferences over present and future consumption. We will represent such preferences in terms of his decisions to save money. Harry has $ today. The bank offers him an overnight interest rate of on his savings. This means, that for each dollar he saves in the bank today, he will receive an interest payment of cents tomorrow.
Please match each option with the right number.
Group of answer choices
If he spends $ today, then his savings tomorrow will be equal to
Choose
If he saves $ today, then his savings tomorrow will be equal to
Choose
If he spends $ today, then his savings tomorrow will be equal to
Choose
If he saves $ today, then his consumption today will be equal to
Choose
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