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Suppose an OLG economy where individuals live for two periods and receive a positive endowment of the consumption good when young and nothing when old.
Suppose an OLG economy where individuals live for two periods and receive a positive endowment of the consumption good when young and nothing when old. Young individuals have the option to consume when young or convert the consumption good into capital, which produces goods in the next period with the constant gross rate of return . There is no fiat money. What is an individual's lifetime budget constraint
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