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Business, 09.10.2021 14:00 kekejones6321

Sally will earn $30,000 this year and $40,500 next year. The real interest rate is 10% between this year and next year; she can borrow or lend at this rate. She has no wealth at the start of this year and plans to finish next year having consumed everything she possibly can. She would like to consume the same amount this year as next year. The inflation rate is 0% (c) How much would Sally save and consume if the current income was $61,500?

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Sally will earn $30,000 this year and $40,500 next year. The real interest rate is 10% between this...

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