Brian earns income equal to $82,000 in the first period, but his income will drop to $19,170 in the second period. a. Sketch his intertemporal budget constraint, assuming a 6.5% interest rate. Add an indifference curve that assumes he optimally chooses to save $40,000 in the first period. Be sure to CLEARLY graph your answer, with labels on the axes and any other important points. Also

Brian earns income equal to $82,000 in the first period, but his income will drop to $19,170 in the second period. a. Sketch his intertemporal budget constraint, assuming a 6.5% interest rate. Add an indifference curve that assumes he optimally chooses to save $40,000 in the first period. Be sure to CLEARLY graph your answer, with labels on the axes and any other important points. Also

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.3P

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