Draw the opportunity set and your indifference map show the


Let us solve a two-period consumption investment decision similar to the one presented in the text. Assume that you have income equal to $20 in each of two periods. Furthermore, you have the ability to both lend and borrow money at a 10% rate. Draw the opportunity set and your indifference map. Show the optimum amount of consumption in each period.

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Finance Basics: Draw the opportunity set and your indifference map show the
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