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3. use the quottheory of intertemporal choicequot model in order to...

Question: use the quottheory of intertemporal choicequot model in order to...

Question details

• Use the "Theory of intertemporal choice" model in order to analyse the effect of the following on consumption and saving:
  1. A decrease in disposable income at period 2.
  2. An increase in the interest rate for a consumer with negative saving.
  3. A decrease in the interest rate for a consumer with positive saving.

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