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Solve the following : Intertemporal Rational Choice Assume that your intertemporal endowment is made of M1=2500? available in the present period and M2 =4200? available

Solve the following : Intertemporal Rational Choice

Assume that your intertemporal endowment is made of M1=2500? available in the present period and M2 =4200? available in the future. The interest rate is 20%. Draw the intertemporal budget constraint and write its equation. What is the opportunity cost of present consumption?

Assume, moreover, that your utility function is

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