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QUESTION 10 Consider the following diagram. we2(1 + 12) c' = Future Consumption we ( 1 + r ) we2 we c= Current Consumption E

QUESTION 10 Consider the following diagram. we2(1 + 12) c' = Future Consumption we ( 1 + r ) we2 we c= Current Consumption E is the endowment point, meaning that... O At E, borrowing takes place, i.e. sy-t and c'0, cy'-t

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