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2. Jennifer lives in two periods, earning $30,000 in after-tax income in period one, during which she consumes and saves for period two. What is
2. Jennifer lives in two periods, earning $30,000 in after-tax income in period one, during which she consumes and saves for period two. What is saved earns interest of 8% per year. a. Sketch Jennifer's inter-temporal budget constraint in period one/period two consumption space. If Jennifer's level of consumption in period one is $10,000, what is the implied level of consumption in period two? b Suppose that interest income is now taxed at 30%, constraint with and without the tax. Will Jennifer save less after the tax on interest is introduced? Sketch Jennifer's inter-temporal budget
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