Question: Please provide the solution to this general accounting question with accurate financial calculations. An individual decides to reduce their expected consumption next year by 1

Please provide the solution to this general accounting question with accurate financial calculations.

An individual decides to reduce their expected consumption next year by 1 unit and, in return, increases their current consumption by 0.91 units. What is the real rate of interest? (a) 7.5% (b) 8.5% (c) 9.9% (d) 10.0%

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