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here is the question Consider an individual who lives fortwo periods, earns a nominal income of 51m in each period, and has zero initial and

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Consider an individual who lives fortwo periods, earns a nominal income of 51m in each period, and has zero initial and terminal assets. The nominal interest rate, R, on dollar loans is 15%, and the expECtEd rate of ination. IF, between the two periods is 10%. Assume that the price level in the first period is 1. A. What is the real value of period 1 income? B. What is the maximum amount of dollars that could be borrowed in period 1? Find the real value of this amount and add it to the real value of period 1 income to see the maximum amount of [real] consumption possible in period 1. C. What is the price level in period 2? What is the real value of period 2 income? D. What is the maximum amount of dollars that can be obtained in period 2 bv saving in period 1'? Find the real value [in period 2} of this amount and add it to the real value of period 2 income to see the maximum amount of {real} consumption possible in period 2

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