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In the two-period model, suppose that a consumer's future income endowment decreases. How does the consumer respond? What happens to the consumer's optimal choice of

In the two-period model, suppose that a consumer's future income endowment decreases.

How does the consumer respond?

What happens to the consumer's optimal choice of current consumption, future consumption, and savings?

Would this response be different for a lender and a borrower?

Plese type instead of hand-writing

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