What is the intertemporal budget constraint in this model


1. What is the intertemporal budget constraint in this model? Explain why some terms have the slope of the budget constraint as a divisor?

2. What does the Ricardian equivalence theorem say? Assuming government borrow-ing is substituted for present-period taxes, what is the eject on current and future consumption and the real interest rate?

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Business Economics: What is the intertemporal budget constraint in this model
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