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A consumer earns 40 dollars of income which can be saved or spent. The graph below shows the consumer's budget constraint if the consumer could
A consumer earns 40 dollars of income which can be saved or spent. The graph below shows the consumer's budget constraint if the consumer could save money in a bank account, earning zero interest. 60 55 Future Consumption 0 0 5 6 8 8 8 8 8 6 8 0 10 20 30 40 50 60 Current Consumption 14. On the graph, draw an indifference curve showing the consumer choosing to save $10 for future consumption. 15. On the graph, include a new budget line showing how the budget constraint changes for the consumer if the consumer could earn 25% on any savings
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