Assume the interest rate at which a person can borrow or lend is twenty percent. Would this
No answer yet for this question.
Ask a Tutor
Question:
Assume the interest rate at which a person can borrow or lend is twenty percent. Would this person be better off paying a tax of $1,000 this year or a tax of $1,100 next year? draw the budget line corresponding to each tax. Does your answer depend on the shape of the person's indifference curves relating consumption this year and next year?
Posted Date: