The figure below shows a budget set for a consumer over two time periods, with a borrowing

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The figure below shows a budget set for a consumer over two time periods, with a borrowing rate rB and a lending rate rL, with rL 1 + rB and will choose to lend if at basket A MRSC1,C2
The figure below shows a budget set for a consumer
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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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