In Irving Fisher's Two-Period Consumption Model, If Y

question 16

Multiple Choice

In Irving Fisher's two-period consumption model, if Y
1
= 20,000, Y
2
= 15,000, and the interest rate r is 0.50 (50
Percent) , then the maximum possible consumption in period one is:

• A)20,000.
• B)25,000.
• C)30,000.
• D)35,000.

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