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Is the following claim true, false, or uncertain? When the economy is open, if = 1/1+r , then the solution to the household's intertemporal consumption
Is the following claim true, false, or uncertain? When the economy is open, if = 1/1+r , then the solution to the household's intertemporal consumption problem implies that C1 = Z1/Z0(C0): Explain your answer in detail, including writing down any mathematical statements and/or derivations needed to support your conclusions.
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