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Suppose the consumer consumes over two periods with an endowment of $200 in each period. Suppose the price level for consumption in period 1 is
Suppose the consumer consumes over two periods with an endowment of $200 in each period. Suppose the price level for consumption in period 1 is p_1=1 and the inflation rate is 100% between periods. Suppose the interest rate for saving and borrowing is 60%. What is the maximum level of period 1 consumption that the consumer can reach by borrowing?
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