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The Intertemporal budget Constraint Now suppose that the consumer spends nothing on consumption in period 1; that is, C,=0 and the consumer saves m The interest rate is r What now will be period 2's consumption level?The Intertemporal Budget Constraint Now suppose that the consumer spends nothing on consumption in period 1; that is, c1 = 0 and the consumer saves s1 = m1 . The interest rate is r. What now will be period 2’s consumption level?
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