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What happens to the budget constraint and abbie opportunity

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Reference no: EM133575280

Question: Suppose Abbie's income (endowment) is all in the future (later) and equals $1,000. Draw the budget constraint showing the possible combinations of consumption now and consumption later if the interest rate equals 10% and if the interest rate equals 20%. What happens to the budget constraint and Abbie's opportunity to consume now and later if the interest rate increases?

Reference no: EM133575280

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