What is the maximum that can be consumed in the first period

Reference no: EM13908721

Assume you earn $10,000 in periods 1 and 2. Also, you inherit $10,000 in period 2. If the borrowing/lending rate is 20%, what is the opportunity set? What is the maximum that can be consumed in the first period? In the second period?

Reference no: EM13908721

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