In the two-period model, suppose a household's income in the first period is $30,000, income in the
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Question:
In the two-period model, suppose a household's income in the first period is $30,000, income in the second period is $60,000, and the real interest rate is 30 percent. What is the household's maximum spending in the second period, if it decides to save the entire amount in the first period?
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