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1 point Two countries are identical except that the representative agent of country A has a larger subjective discount factor () than the representative agent
1 point Two countries are identical except that the representative agent of country A has a larger subjective discount factor () than the representative agent of country B. The C-CAPM with power utility and lognormal consumption growth predicts that we will observe that country A's representative agent consumes __ in the current period and that the price of an identical financial asset is in country A. more; higher less; higher more; lower less; lower Next
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