Borrowing and lending with financial markets

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Borrowing and Lending with Financial markets

a. Illustrate the position of a "borrower" in the capital markets in the context of the two-period investment-consumption model. Be sure to properly label the graphs

b. Illustrate the position of a "lender" in the capital markets in the context of the two-period investment-consumption model. Be sure to properly label the graphs

c. Show how changes in the interest rate can affect the utilities of borrower/lenders.

Reference no: EM132393509

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