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Assume Elsa has current income of 50,000 and expects income of 60,000 next period. Interest rate 6%. Elsa desires to have the same amount of
Assume Elsa has current income of 50,000 and expects income of 60,000 next period. Interest rate 6%. Elsa desires to have the same amount of consumption expenditure during both periods. In the two-period certainty framwork, determine how much Elsa's expenditures are during each period. Is Elsa a saver or spender?
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