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The Intertemporal budget Constraint Suppose that the consumer chooses not to save or to borrow Q: What will be consumed in period 1? A: G,=m Q: What will be consumed in period 2? A: C2-2The Intertemporal Budget Constraint Suppose that the consumer chooses not to save or to borrow. Q: What will be consumed in period 1? A: c1 = m1 . Q: What will be consumed in period 2? A: c2 = m2
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