Do you think the household is ambiguous

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Reference no: EM13201945

Describe how a budget constraint of a house hold in a two-period model is affected by each of the following changes. In each case, do you think the household is better off , or worse off, or is it ambiguous. What does the answer depend on? A. Period 1 income is lower. B. The interest rate is higher. C. Period 2 income is lower, adn the interest rate is lower.

Reference no: EM13201945

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