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Consider an economy where there are 10 identical consumers who contemplate their optimal consumption plan for two periods. Assume now that the interest rate at
Consider an economy where there are 10 identical consumers who contemplate their optimal consumption plan for two periods. Assume now that the interest rate at which all consumers (and the government) can borrow and lend is zero. These consumers have income 60 in period 1 and income 40 in period 2.
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