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b. If Y1 increases, will C1 necessarily increase? Explain your answer. 3. Using the twoperiod consumption model, solve for Y2 if rst period income is

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b. If Y1 increases, will C1 necessarily increase? Explain your answer. 3. Using the twoperiod consumption model, solve for Y2 if rst period income is $60,000, rst period consumption is $55,000, second period consumption is $70,000, and the interest rate is 6%. Given Find Y1 = Y2 C1 =

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