Question: The figure below shows a budget set for a consumer over two time periods, with a borrowing rate rB and a lending rate rL, with

The figure below shows a budget set for a consumer over two time periods, with a borrowing rate rB and a lending rate rL, with rL 1 + rB and will choose to lend if at basket A MRSC1,C2

C2 2200 2000(1.05) Slope =-1.05 2200 Slope=-1.12 2000 2000+2200/1.12 C

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