Two different types of consumers

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The economy exists for two periods. There are two different types of consumers. The type A has anincome of yA1 = 100 in period 1 and yA2 = 100 in period 2. The type B has an income of yB1 = 0in period 1 and yB2 = 200 in period 2. The interest rate for both borrowers and lenders is r > 0.Consumers pay no taxes.

Reference no: EM133629884

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