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Please answer the following question: Part III. Analysis of Intertemporal Trade (30 points) Imagine a world consisting of two large economies (Home and Foreign), producing

Please answer the following question:
Part III. Analysis of Intertemporal Trade (30 points)
Imagine a world consisting of two large economies (Home and Foreign), producing good according to the production possibilities frontiers as described below and living for two periods (now and future). Think of C0 as current consumption and C1 as future consumption.
* Home Foreign 3 PPF PPF Co Co

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