In the Home countryone can exchange 20 currentonsumptiorgoods for 30 future consumptiongoods so 20 goods can be consumedtodayor 30 goods areavailablein thefuture(if thereis no presentconsumptiob. Theautarkriceratiois simply Pc IP = 1 + r = 1.5 so that r = 0.5. In theForeigncountryone canexchange40 current consumptimgoods for 50 futureconsumptiomo 40 goods can be consumedtoday or