Business, 29.01.2021 16:30 tiffanyheist

Aji Fatou and Mustapha both obey the two-period model of consumption. Aji Fatou earns $100 in the first period and $100 in the second period. Mustapha earns nothing in the first period $210 in the second period. Both of them can borrow or lend at the interest rate r. You observe both Aji Fatou & Mustapha consuming $100 in the first period and $100 in the second period. Suppose the interest rate increases. The increase in interest rate will make Aji Fatou better off in both period. a. True
b. False

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Aji Fatou and Mustapha both obey the two-period model of consumption. Aji Fatou earns $100 in the fi...