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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
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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