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Part 1 (0.2 point) See Hint A consumer receives an endowment of $400.00 this period and $900.00 next period. Currently the interest rate is 18.00%.
Part 1 (0.2 point) See Hint A consumer receives an endowment of $400.00 this period and $900.00 next period. Currently the interest rate is 18.00%. The future value of the endowment is $ Part 2 (0.4 point) See Hint Suppose that instead the endowment is $480.00 this period and $1170.00 next period. Suppose that the interest rate is still 18.00%. Now the future value of the endowment is $ With the new endowment, the consumer is Part 3 (0.4 point) See Hint Now suppose that the endowment is $350.00 in the first period and $875.00 in the second period. The interest rate is still 18.00%. Now the future value of the endowment is $ . Compared to the endowment in Part 1, with the new endowment, the consumer is
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