Mr O B Kandle will live for only two periods, In the first period he will...

 

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Mr O B Kandle will live for only two periods, In the first period he will earn $100.000. In the second period he will retire and live on his savings Mr. Kandie has a Cobb- Douglas utility function Utel, c2) =c1 2 c2, where el is his period 1 consumption and c2 is his period 2 consumption. The real interest rate is r O If the interest rises, Mr. Kandle will save less. If the anterest tate rises. Mr Kandle will save more. O None O A change in the interest rate won't affect his saving OHe will consume the same amount in each period Mr O B Kandle will live for only two periods, In the first period he will earn $100.000. In the second period he will retire and live on his savings Mr. Kandie has a Cobb- Douglas utility function Utel, c2) =c1 2 c2, where el is his period 1 consumption and c2 is his period 2 consumption. The real interest rate is r O If the interest rises, Mr. Kandle will save less. If the anterest tate rises. Mr Kandle will save more. O None O A change in the interest rate won't affect his saving OHe will consume the same amount in each period

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ANSWER E he will consume the same quantity in each period Real interest rate is defined because the ... View the full answer