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8. In the videos, the analysis assumes the interest rate at which the consumer is able to borrow and save is the same. Typically, interest

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8. In the videos, the analysis assumes the interest rate at which the consumer is able to borrow and save is the same. Typically, interest rates at which we can borrow are higher than those at which we can save. Carefully sketch the intertemporal budget constraint for a person who has a current income of 30,000 and a future income of 40,000. Assume this person can save money at an interest rate of 5% but can only borrow at an interest rate of 10%. Label the slopes and the intercepts

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