Draw a Two Period Budget Line Where the Borrow/lending Rate

question 13

Multiple Choice

Draw a two period budget line where the borrow/lending rate of interest,r,allows consumers to choose consumption in each of the two periods.C₁ and C₂ given their anticipated income on two periods,Y₁ and Y_2.The slope is

• A) r
• B) −r
• C) 1 + r
• D) −(1 + r)

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Definitions:

Sheet Tab

A component of spreadsheet software that allows users to navigate between multiple sheets within a workbook.

I-beam Pointer

A cursor shape resembling the letter 'I', indicating that text can be edited or selected in that area.

Adjacent Cells

Cells that are directly next to each other in a grid or table, often sharing a common border or wall.

Income

The monetary payment received for goods or services, or the earnings from investment over a particular period of time, typically measured on a monthly or annual basis.