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How do you solve these questions for the answers given? View Zoom Share Highlight Rotate Markup Search... hal7,impdf the nominal interest rate. (10% in this

image text in transcribedHow do you solve these questions for the answers given?

View Zoom Share Highlight Rotate Markup Search... hal7,impdf the nominal interest rate. (10% in this case) and the inflation rate (6% in this case), that is, .038~.10- .06. As you will see, this is not such a good approximation if inflation rates and interest rates are large. ers 130 10.1 (0) Peregrine Pickle consumes (ci, c2) and earns (mi, m2) in periods 1 and 2 respectively. Suppose the interest rate is r (a) Write down Peregrine's intertemporal budget constraint in present ACCY 201 Fall 2018 Ti2 value terms. Ci ACE 435 (b) If Peregrine does not consume anything in period 1, what is the most he can consume in period 2 mi(1+r) m2. This is the (future value, present value) of his endowment Future value. (c) If Peregrine does not consume anything in period 2, what is the most he can consume in period 1? mit d present value) of his endowment. Present value. What is the slope of Peregrine's budget line? -(1 + r) TW 250 131 E 403 This is the (future value, . 10.2 (0) Molly has a Cobb-Douglas utility function U(2f where 0

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