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You live in a world with two time periods. Your income is $100 in time period 1 and $150 in period 2.
(a) If the interest rate is 0.03 (3%), draw your inter temporal budget constraint.
(b) If you value current consumption 1.5 as much as future consumption at all points (U = 1.5C1 + C2), what is your optimal consumption bundle?
(c) Now suppose current and future consumption are perfect complements you can only enjoy current consumption if you consume it with two units of future consumption (U = min{2C1, C2}). What is your optimal consumption bundle?
Also the economy has G = $1100, I = $404, and XN = $15. Unemployment in the economy is currently 5.2% and inflation is 0.1%
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q.in a certain city where all parking is controlled by the city it is possible to provide parking facilities in the
The installed cost of a conventional electric hot water heater is $200. A family of four uses an average of 300 liters of hot water a day, which will require $350 worth of electricity each year.
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