Equilibrium gross real rate of interest

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(a) Is the equilibrium gross real rate of interest in an economy with borrowing constraint higher than that without borrowing constraint?

(b) Is the growth rate of consumption of the productive entrepreneurs in an economy with borrowing constraint higher than that without borrowing constraint?

(c) Is the growth rate of consumption of the unproductive entrepreneurs in an economy with borrowing constraint higher than that without borrowing constraint?

Reference no: EM133115808

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