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Q 2(b) Explain how the Consumption-based Asset Pricing Model connects interest rates, and investor's decisions about how much to save and how much to consume,

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Q 2(b) Explain how the Consumption-based Asset Pricing Model connects interest rates, and investor's decisions about how much to save and how much to consume, with asset pricing. (10 marks) Q 2(b) Explain how the Consumption-based Asset Pricing Model connects interest rates, and investor's decisions about how much to save and how much to consume, with asset pricing. (10 marks)

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