Suppose that a person lives for two periods, earning $30,000 in income in period 1, which she
Question:
a. Draw that person’s intertemporal budget constraint.
b. Draw that persons’s intertemporal budget constraint if the government taxes interest at the rate of 30%.
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a The xaxis intercept is consumption out of the entire earnings of period 1 30000 The yaxis intercep...View the full answer
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